Best Mid Cap Stocks Under Rs 500 – Top Stocks & Complete List

Best Mid Cap Stocks Under Rs 500 with RoE of 20%: Investors are constantly on the lookout for highly profitable companies that can continue to grow in the coming years. Thus, mid cap stocks with high return ratios are a good proposition as you can expect ample headroom for growth. In this article, we’ll present you a list of such top mid cap stocks under Rs 500 with RoE of 20%.

Best Mid Cap Stocks Under Rs 500

For our study, we’ll look at businesses from various industries: city gas distribution, chemicals, and quick-service restaurants. We’ll learn about their businesses and any recent developments. Later, a table lists more best mid cap stocks under Rs 500 with RoE of 20%.

Best Mid Cap Stocks Under Rs 500 #1 – Indraprastha Gas Ltd.

CMP	₹494	Market Cap (Cr.)	₹34,600
EPS	₹24	Stock P/E	21
RoCE	27.1%	RoE	20.9%
Promoter Holding	45.0%	Book Value	₹116
Debt to Equity	0.01	Price to Book Value	4.2
Net Profit Margin	18.9%	Operating Profit Margin	24.6%

Indraprastha Gas Ltd. (IGL) was incorporated in 1998 as a joint venture of GAIL and BPCL. Presently, both the PSUs hold a 22.5% stake each totaling the promoter holding 45%. In addition to this, a 5% stake lies with the Delhi Government.

IGL is engaged in the business of distribution of compressed natural gas (CNG) and piped natural gas (PNG) for automotive, domestic, and commercial uses. Its area of operation includes Delhi NCT and nearby towns as well such as Ajmer, Meerut, etc.

It owns more than 725 CNG gas stations in and around Delhi. The company sells over 43.86 lakh kgs of natural gas every day.

Recently, the gas distributor acquired stakes in Central UP Gas Limited (CUGL) and Maharashtra Natural Gas Limited (MNGL) to diversify its presence and enter CGD markets of Pune, Kanpur, and more.

The management of IGL announced last year that it has earmarked a large investment of Rs 8,000 crore towards the expansion of CNG stations and pipelines. 

IGL is a debt-free mid cap stock with a high RoE of 20.9%. The trailing twelve months (TTM) profit after tax of IGL after the December 2022 quarter results stood at Rs 1,673 crore on sales of Rs 12,865 crore. 

Best Mid Cap Stocks Under Rs 500 #2 – Gujarat Gas Ltd.

CMP	₹460	Market Cap (Cr.)	₹31,600
EPS	₹23	Stock P/E	20
RoCE	30.9%	RoE	25.7%
Promoter Holding	60.9%	Book Value	₹91
Debt to Equity	0.05	Price to Book Value	5.0
Net Profit Margin	7.9%	Operating Profit Margin	12.9%

Owned by Gujarat State Petronet, Gujarat Gas Ltd (GGL). is a city gas distribution company with a prominent presence in the state of Gujarat and neighboring states. It owns more than 27 CGD licenses and has operations in 44+ cities in six states and one Union Territory giving it a diversified footprint. 

The Ahmedabad-headquartered company was established in 1980. It saw a change of ownership when British Gas acquired a majority stake in 1997. Later, Gujarat State Petroleum Corporation bought BG Group’s stake marking a reverse privatization.

The Gujarat government company is one of the largest CGD players in the country with a licensed area of 1,75,700 sq. km., 17 lakh residential customers, 13,400 commercial customers, 711 CNG stations, and 4,300 industrial units.

GGL has plans to increase its capital expenditure every year from now. Previously, it used to spend Rs 500 crore every year on average. Going forward, the management is targeting a CAPEX of Rs 1,000 crore.

Despite being in the same industry, GGL boasts off higher RoE of 25.7% than Indraprastha Gas. The company reported a TTM net profit of Rs 1,602 crore on an income of Rs 17,500 crore after the December 2022 results. Its earnings have continuously increased over the last several years.

It is also a debt-free stock with a high promoter holding of 60.9%.

Best Mid Cap Stocks Under Rs 500 #3- Jubilant FoodWorks Ltd. 

CMP	₹448	Market Cap (Cr.)	₹29,500
EPS	₹6	Stock P/E	70
RoCE	21.3%	RoE	25.5%
Promoter Holding	41.9%	Book Value	₹31
Debt to Equity	1.12	Price to Book Value	14.3
Net Profit Margin	9.8%	Operating Profit Margin	25.2%

Jubilant Foodworks Ltd. (JFL) is the renowned master franchiser of Domino’s Pizza outlets in India, Sri Lanka, Bangladesh, and Nepal. It has exclusive rights to develop and operate pizza stores in the country and is the largest franchise of Domino’s outside the US.

The company was founded close to three decades ago in 1995 by Shyam Sunder Bhartia and Hari Bhartia. Since then, it has grown to become the largest quick-service restaurant chain in India.

It operates over 1,900 outlets across different brands. It has a presence in more than 387 cities in the country. Along with Domino’s Pizza, Jubilant also has exclusive rights to own and operate Dunkin and Popeyes stores in India. Furthermore, in recent years, JFL has also launched two in-house brands: Ekdum and Hong’s Kitchen.

The net profit and sales of Jubilant Foodworks have consistently grown since FY17 because of volume growth and margin expansion both. The trailing twelve months (TTM) profit after tax was recorded at Rs 420 crore on an income of Rs 5,064 crore. It is a profitable business with a high RoE of 25.5%.

Furthermore, the management notified in January this year that it has planned a CAPEX of Rs 900 crore over the next 12 to 18 months. It will be deployed towards upgrading the digital infrastructure, Domino’s and Popeyes outlets, and developing back-end units that service outlets.

Best Mid Cap Stocks Under Rs 500 #4 – Sona BLW Precision Forgings Ltd.

CMP	₹459	Market Cap (Cr.)	₹26,900
EPS	₹6	Stock P/E	73
RoCE	21.5%	RoE	20.6%
Promoter Holding	33.0%	Book Value	₹35
Debt to Equity	0.12	Price to Book Value	13.0
Net Profit Margin	17.7%	Operating Profit Margin	25.8%

Sona BLW Precision Forgings was started almost three decades ago in 1995. Fast forward to the present date, it is a leading auto ancillary company in India with an international presence. Over the years, it has grown organically and inorganically to become of the most preferred automotive components supplier.

Sona BLW had a brand revamp in 2019 when it acquired Comstar Automotive Technologies. Thereafter, a new image ‘Sona Comstar’ was crafted to leverage the brand synergies. 

Talking about the business of the company, it is engaged in the design, production, and sale of critical automotive components including differential gears, differential assemblies, BSG systems, EV traction motors, conventional & micro-hybrid starter motors, and motor control units.

In FY22, overseas sales accounted for a majority of 78% of the total income of Sona Comstar making it a well-diversified company. What’s more? EV components sales made up 25% of the revenue positioning Sona Comstar well to ride the EV boom.

The automotive components manufacturer employs over 3,500 individuals across its nine production and assembly sites located in India, the USA, Mexico, and China. It has three R&D centers and eight warehouses.

Source: Sona BLW Precision Forgings Annual Report FY22

Sona BLW is a high RoE stock supported by its strong profit margins. Promoters hold a 33% stake in the business that has reported consistent growth (barring FY20) in profits and sales both since FY277. Its TTM net profit stood at Rs 447 crore on sales of Rs 2,264 crore after the December 2023 quarter results.

Best Mid Cap Stocks Under Rs 500 #5- Sumitomo Chemical India Ltd.

CMP	₹412	Market Cap (Cr.)	₹20,600
EPS	₹10	Stock P/E	41
RoCE	33.7%	RoE	25.1%
Promoter Holding	75.0%	Book Value	₹44
Debt to Equity	0.01	Price to Book Value	9.3
Net Profit Margin	14.2%	Operating Profit Margin	19.7%

Sumitomo Chemical India Ltd. (SCIL) is a subsidiary of Sumitomo Chemical Company, a Japanese global leader in the chemicals industry. The parent holds the maximum allowed 75% shareholding in the company.

SCIL is engaged in the manufacturing, import, and marketing of a wide variety of products: crop protection, rodent control, pesticides, grain fumigation, environmental health, and more.

The company is run by a strong workforce of over 1,750 employees. It has 5 manufacturing facilities and a large network of 16,000 direct distributors handling 700+ SKUs across 200+ brands. 

The management of the chemical stock has put an additional CAPEX of Rs 120 crore on the top of usual CAPEX of Rs 70-75 crore. It plans to monetize 5 more products and has a few more in the pipeline.

The stock of SCIL currently trades at a price-to-earnings ratio of 41 and a price-to-book value ratio of 9.3. It is a debt-free stock with a high RoE of 25.1% 

List of All Mid Cap Stocks Under Rs 500

The table below presents the names of all mid cap stocks under Rs 500

Sl No	Company	Industry	MCap(Cr)	Current Price (Rs)	PE Ratio TTM
1	Indian Overseas Bank	Bank - Public	₹47,293.84	₹25.08	27.74
2	Max Healthcare Institute Ltd.	Hospital & Healthcare Services	₹47,010.52	₹484.10	48.15
3	CG Power and Industrial Solutions Ltd.	Electric Equipment	₹46,630.96	₹305.10	71.86
4	Yes Bank Ltd.	Bank - Private	₹45,835.54	₹15.94	62.29
5	NHPC Ltd.	Power Generation, Distribution	₹45,805.36	₹45.60	11.92
6	Indian Railway Finance Corporation Ltd.	Finance Term Lending	₹45,530.67	₹34.84	7.00
7	Power Finance Corporation Ltd.	Finance Term Lending	₹44,551.37	₹168.75	3.09
8	JSW Energy Ltd.	Power Generation, Distribution	₹42,778.01	₹260.10	20.67
9	Ashok Leyland Ltd.	Automobiles-Trucks,Lcv	₹42,412.36	₹144.45	67.48
10	IDFC First Bank Ltd.	Bank - Private	₹41,885.95	₹63.28	16.86
11	Indian Bank	Bank - Public	₹41,323.74	₹332.00	8.14
12	Aditya Birla Capital Ltd.	Finance - NBFC	₹41,231.36	₹170.50	8.89
13	Indus Towers Ltd.	Telecommunication - Service Provider	₹40,868.72	₹151.70	20.04
14	Bandhan Bank Ltd.	Bank - Private	₹37,001.34	₹229.70	11.25
15	FSN E-Commerce Ventures Ltd.	e-Commerce	₹36,981.97	₹129.65	0.00
16	Hindustan Petroleum Corporation Ltd.	Refineries	₹36,016.94	₹253.90	0.00
17	Mahindra & Mahindra Financial Services Ltd.	Finance - NBFC	₹35,428.82	₹286.75	17.10
18	Bank Of India	Bank - Public	₹35,426.09	₹86.33	11.37
19	REC Ltd.	Finance Term Lending	₹34,863.89	₹132.40	3.35
20	Steel Authority Of India Ltd.	Steel & Iron Products	₹34,159.44	₹82.80	9.78
21	UCO Bank	Bank - Public	₹34,098.39	₹28.52	18.67
22	Petronet LNG Ltd.	Industrial Gases & Fuels	₹33,907.50	₹226.05	10.20
23	Indraprastha Gas Ltd.	Industrial Gases & Fuels	₹33,817.04	₹484.25	20.26
24	Vodafone Idea Ltd.	Telecommunication - Service Provider	₹33,686.34	₹6.92	0.00
25	NMDC Ltd.	Mining & Minerals	₹31,767.77	₹108.40	6.18
26	Gujarat Gas Ltd.	Gas Transmission, Marketing	₹31,755.44	₹461.30	19.82
27	Jubilant FoodWorks Ltd.	Consumer Food	₹30,682.80	₹465.00	72.81
28	General Insurance Corporation of India	Insurance	₹30,623.05	₹174.55	5.01
29	Rail Vikas Nigam Ltd.	Engineering - Construction	₹29,576.01	₹141.85	20.55
30	Biocon Ltd.	Pharmaceuticals & Drugs	₹29,150.57	₹242.80	75.11
31	Bharat Heavy Electricals Ltd.	Engineering - Industrial Equipments	₹28,107.22	₹80.72	36.09
32	GMR Airports Infrastructure Ltd.	Engineering - Construction	₹27,572.20	₹45.72	228.20
33	Oil India Ltd.	Oil Exploration	₹27,451.72	₹252.60	3.01
34	The Federal Bank Ltd.	Bank - Private	₹27,052.42	₹127.80	8.55
35	Delhivery Ltd.	Courier Services	₹25,922.40	₹357.60	0.00
36	Poonawalla Fincorp Ltd.	Finance - NBFC	₹24,988.86	₹325.35	36.54
37	Central Bank Of India	Bank - Public	₹24,636.51	₹28.38	14.68
38	Jindal Stainless Ltd.	Steel & Iron Products	₹23,957.83	₹290.70	15.64
39	Motherson Sumi Wiring India Ltd.	Steel & Iron Products	₹23,710.40	₹53.63	60.03
40	L&T Finance Holdings Ltd.	Finance - NBFC	₹23,500.19	₹94.76	14.48
41	Apollo Tyres Ltd.	Tyres & Allied	₹23,416.17	₹369.25	29.66
42	Punjab & Sind Bank	Bank - Public	₹22,495.47	₹33.19	17.13
43	Devyani International Ltd.	Consumer Food	₹21,342.47	₹176.90	75.98
44	Kansai Nerolac Paints Ltd.	Paints	₹21,268.47	₹395.40	52.67
45	The Fertilisers And Chemicals Travancore Ltd.	Fertilizers	₹20,913.37	₹323.20	34.12
46	Bank Of Maharashtra	Bank - Public	₹20,507.82	₹30.47	7.87
47	Sumitomo Chemical India Ltd.	Pesticides & Agrochemicals	₹20,477.45	₹412.00	40.74
48	Aditya Birla Fashion and Retail Ltd.	Retailing	₹20,322.84	₹214.20	104.47
49	Fortis Healthcare Ltd.	Hospital & Healthcare Services	₹20,093.21	₹265.55	38.25
50	LIC Housing Finance Ltd.	Finance - Housing	₹20,069.05	₹364.85	7.13
51	Prestige Estates Projects Ltd.	Construction - Real Estate	₹19,616.17	₹487.40	13.83
52	The New India Assurance Company Ltd.	Insurance	₹19,586.48	₹118.85	53.01
53	Zee Entertainment Enterprises Ltd.	TV Broadcasting & Software Production	₹18,499.60	₹192.60	43.45
54	IIFL Finance Ltd.	Finance - Investment	₹17,640.56	₹463.70	11.76
55	Laurus Labs Ltd.	Pharmaceuticals & Drugs	₹16,989.05	₹315.40	21.50
56	IRB Infrastructure Developers Ltd.	Engineering - Construction	₹16,957.51	₹28.08	22.19
57	Sun TV Network Ltd.	TV Broadcasting & Software Production	₹16,955.49	₹428.70	9.73

In Conclusion

We learned about some of the best mid cap stocks under Rs 500 with RoE of 20% and above. A constant theme was most of the companies have put CAPEX plans in place and are eying growth in the coming quarters. Thus, high RoE coupled with good growth is like a double-edged sword for the investors. 

In your opinion, what other important metrics should we keep in mind while picking high RoE stocks? How about you let us know in the comments below?

Stay updated on the latest Stock Market News and Corporate Actions NSE with Trade Brains Portal, while also keeping an eye on the Top Gainers Today in NSE with our Stock Heatmap feature.

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High ROE Stocks in India – Large, Mid and Small Cap!

High ROE Stocks in India: There are many types of investors and styles based on personal preferences. These investors look at different metrics before investing in the stock market.

Those who invest for the long term are generally interested in learning about the fundamentals of the company.

They use several valuation metrics to know more about the company. One such important measure is Return on Equity (ROE). In this article, we will understand what is ROE and also look at high ROE stocks in India.

What is ROE or Return On Equity?

Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders’ equity. This is usually expressed in percentages.

ROE is also considered the return on net assets. It is because shareholders’ equity is equal to a company’s assets minus its debt. This metric is useful in measuring a corporation’s profitability and how efficient it is in generating profits.

The ratio takes into account an item each from the Income statement (Net Income) and Balance sheet (Shareholder’s equity). The ROE shows a firm’s ability to turn its equity investments into profits. Investors can learn how much profit is the company able to generate for every rupee invested by them.

What does ROE tell you?

A healthy sign for the company is when the ROE has grown consistently over time. This will prove the management’s ability to reinvest its earnings properly with the ultimate goal of increasing the shareholder’s value.

To assess a company based on its ROE, it is also important to compare it with its peers. Apart from comparison with its peers, it is also necessary to analyze the industry’s ROE. It is so because different industries tend to have varied ROE standards.

Return on Equity and Debt

The ROE as a single measure is generally more useful in analyzing companies that are typically debt-free. It is because having excessive debt on the balance sheet can inflate the ROE.

How so? It is because of the simple accounting equation which states that “Equity= Asset – Liabilities (Debt)”.  And when used for ROE, as per the basic rule of math, if the denominator decreases,  the fraction as whole increases i.e., higher ROE. 

What is a good ROE in the Indian stock market?

A specific ROE range cannot be deemed as a good return on equity for a company. While an ROE of 25% is desirable for some industries, an ROE of 15% will also be considered good for some other industries. So, as a good rule of thumb, a company’s ROE should be equal to or above the average ROE of the companies in the same sector

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High ROE Stocks in India

Here is the list of top companies with high ROEs in the Indian Stock market. They are:

High ROE Stocks in India: Large Cap

1. Nestle India Ltd.

Nestle India is an Indian subsidiary of the Swiss-based multinational company Nestle. It is a prominent player in the food and beverage sector.

It offers products across a range of categories like dairy (Milkmaid), cereals (Nesplus), baby cereals (Ceregrow), etc.  Nestle is a debt-free company. 

The company has been able to deliver exceptional results over the few years. The average five-year ROE for the company is 87.36%.

On a yearly basis, from 2018 to 2022, the company has a return on equity of  45.3%, 70.39%, 105.76%, 106.84%, and 108.52% respectively. Superior market share along with strong brand recognition gives Nestle the edge over its peers. 

2. Procter & Gamble Hygiene and Health Care Ltd.

P&G Hygiene is an Indian arm of American multinational P&G.  It is one of the leading fast-moving consumer goods companies which specializes in personal care and hygiene products.

The product portfolio includes dominant brands such as Pampers, Gillette, Whisper, Old Spice, Head & Shoulder, Ariel, etc. It is also a debt-free company. 

The company maintained an average 5-year ROE of 60.93%. The ROE numbers from 2018 to 2022 are 57.17%, 49.79%, 42.74%, 71.64%, and 83.3% respectively.

The consistency in such high returns can be attributed to its focus on driving consumer meaningful innovations backed by significant distribution expansion and strong advertising. 

3. Colgate-Palmolive (India) Ltd.

Colgate Palmolive India is an Indian subsidiary of American consumer goods company Colgate Palmolive. It is engaged in oral care with products ranging from toothpaste, toothbrushes, mouthwashes. It also offers personal care products under the “Palmolive” brand. 

The ROE for this large-cap company from 2018 to 2022 has been 48.32%, 52.37%,  53.75%, 75%, and 74.4% respectively.  The five-year average ROE sums up to 60.77%.

The strong performance is backed by its strong leadership with significant market share and continuous focus on innovation by offering new products.

Complete list of High ROE Stocks in India: Large Cap

Company	2018	2019	2020	2021	2022	Average 5 yr
Nestle India Ltd.	45.3	70.39	105.76	106.84	108.52	87.36
Colgate-Palmolive (India) Ltd.	48.32	52.37	53.75	75	74.4	60.77
Procter & Gamble Hygiene and Health Care Ltd.	57.17	49.79	42.74	71.64	83.3	60.93
Hindustan Unilever Ltd.	74.82	80.29	84.25	28.63	18.37	57.27
Coal India Ltd.	31.49	74.91	56.99	37	43.65	48.81
Page Industries Ltd.	45.86	48.57	43.04	39.96	54.37	46.36
Marico Ltd.	34.1	41.21	35.03	38.62	38.43	37.48
Britannia Industries Ltd.	33	30.32	32.39	46.9	49.89	38.50
Tata Consultancy Services Ltd.	30.29	36.18	37.6	38.55	44.13	37.35
Tata Elxsi Ltd.	37.04	34.5	25.2	30.15	37.23	32.82
Bharat Petroleum Corporation Ltd.	29.04	22.63	9.74	38.82	22.33	24.51

High ROE Stocks in India: Mid-cap

1. Castrol India Ltd.

Castrol India Limited is an automotive and industrial lubricant manufacturing company. It is the 2nd largest manufacturer of automotive and industrial lubricants in India with around 20% market share in the industry. The company has zero debt on its balance sheet. 

Castrol India has maintained an average ROE of 54.51% in the last five years. From 2018 to 2022 it had a ratio of 65.56%, 66.22%, 42.58%, 50.64%, and 47.55% respectively.

The companies focus on strategic interventions along with optimizing the costs, driving efficiencies, and cash performance. Along with that, it has a key focus on implementing cutting-edge technology through which it could launch several new brands. 

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2. Gillette India Ltd.

Gillette India Ltd is a renowned player in the FMCG industry. It is in the business of manufacturing Blades and Razors, Oral Care, and Portable Power. It has created brands like Duracell, Oral-B, MACH3 Turbo, and 7oclock. The company has zero long-term liabilities. 

In the mid-cap category, Gillette has maintained a high ROE over the years. From 2018 to 2022 it had a ratio of 38.56%, 34.56%, 27.44%, 36.86%, and 35.54% respectively.

This takes its 5-year average to 34.59. The performance can be due to its superiority in product and commercial innovations and affordable pricing of its products. 

Complete list of High ROE Stocks in India: Midcap

Company	2018	2019	2020	2021	2022	Average 5 yr
Castrol India Ltd.	65.56	66.22	42.58	50.64	47.55	54.51
Gillette India Ltd.	38.56	34.56	27.44	36.86	35.54	34.592
Computer Age Management Services Ltd.	34.6	29.99	34.48	39.11	51.19	37.874
Alkyl Amines Chemicals Ltd.	23.69	25.33	47.91	44.6	25.32	33.37
Cholamandalam Financial Holdings Ltd.	37.14	39.14	27.43	35.59	38.18	35.496
Manappuram Finance Ltd.	18.91	22.84	29.02	26.58	16.98	22.866
Alembic Pharmaceuticals Ltd.	20.42	24	26.97	26.91	10.01	21.662

High ROE Stocks in India: Small cap

1. Gujarat Themis Biosyn Ltd.

Gujarat Themis Biosyn Ltd is a biotech and synthetic product manufacturing company. It manufactures and distributes pharmaceuticals bulk drugs called rifampicin.

Its other products include preparations of active pharmaceutical ingredients rifampicin and lovastatin. This zero-debt company exports its products to Europe and the United States.

The ROE of this small-cap company has been exceptional over the years. Over the last five years starting from 2018 to 2022 it has an ROE of  38.06%, 41.85%, 77.99%, 53.82%, and 50.35% respectively taking its average to 52.41%.

The shift from contract manufacturing to a manufacturing and sales model helped the company to increase its earnings and thus margins.

2. TAAL Enterprises Ltd.

TAAL Tech is a niche Engineering and Technology Solutions provider serving global corporations. It has been the partner of choice for those seeking the ultimate in Air Charter Solutions. The company also has zero debt on its balance sheet.

The ROE for the last five years from 2018 to 2022 is 72.94%, 53.28%, 38.88%,50.17%, and 36.48% making its 5 years average 50.35%. The company focuses on product engineering and service tailored to the needs of its customers giving it an edge in the industry.

Complete List of High ROE Stocks in India: Small cap

Company	2018	2019	2020	2021	2022	Average 5 yr
Gujarat Themis Biosyn Ltd.	38.06	41.85	77.99	53.82	50.35	52.414
Hawkins Cookers Ltd.	44.97	47.47	56.13	50.83	42.93	48.466
TAAL Enterprises Ltd.	72.94	53.28	38.88	50.17	36.48	50.35
Kanchi Karpooram Ltd.	53.26	56.46	33.39	50.78	18	42.378
Bajaj Consumer Care Ltd.	42.79	46.31	33.15	31.73	21.69	35.134

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 In Closing

In this article, we looked at the companies with high ROE in different categories. This metric is useful in fundamental analysis. However, to get a clear picture this should be analyzed with other ratios as well. In addition to that, ROE varies according to the industry.

Therefore, comparing a company’s ROE with the industry average would give a better understanding. That’s all for this post on High ROE Stocks in India. How often do you check the ROE before investing? Let us know in the comments below. Happy Investing!!!

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Options Trading 101: What is Options Trading?

Understanding what is Options Trading: Options are one of the highly traded financial instruments and darling of the big traders and investors. However, for beginners, understanding what is options trading is one of the biggest difficulties because of its complexity (which comes by nature) and the difficult jargon used by the experts.

In this article, we’ll discuss exactly what is options trading and how it works with the help of a few examples. Let’s get started.

What is Options Trading?

Options are financial instruments whose value is derived from the value of an underlying or involved asset like stocks, commodities or any other asset. It gives the Options buyers a right to buy the underlying asset at a pre-decided price from the option seller on or before a pre-defined date (also known as the expiry day).

However, here, the options buyer is not obligated to honor the contract upon expiry i.e. he has the right to buy the asset only if he chooses to. Nonetheless, the Options Seller is obligated to honor the contract.

This is because the option seller receives compensation in the form of this fee (also known as the premium) to give up his right to underlying assets till the expiry of the contract. If the buyer does not want to buy the asset from the seller, he will simply lose the premium paid beforehand. Options trading is the system of buying or selling these options contracts.

Now, let us understand this better with the help of an example.

An example to Understand Options

Imagine Mohan has a wedding in his house after four months and wants to buy gold for the same. However, he is fearful of the fact that the gold price might go up in the future. Therefore, to protect himself from the risk of price fluctuations, he goes to a Jewelry shop, and enters into an agreement with the shop owner whereby he fixes the price for jewelry for buying four months down the line, at the current price of Gold.

But, you must be wondering as to, what is the incentive here for the Jewelry shop owner to fix the price because he is potentially taking a big price risk. If the price goes up after four months, still he’ll have to sell the jewelry at the pre-determined price. Here, his incentive is a small fee (i.e. Premium/Token) that he will be charging to Mr. Mohan for fixing the price of gold. And this fee here is non-refundable.

Say, four months down the line if the price of gold goes up then Mr. Mohan has the right to buy gold at the pre-decided price. On the other hand, if for some reason the price of gold comes down then he does not have to exercise his right, i.e. he may choose to buy jewelry from some other shop at the discounted current price. He merely stands to lose his premium/token.

Who are Options Buyers and Sellers?

An option buyer is a trader/investor who buys the option from the seller. It means that the buyer buys the right to buy an underlying asset at a pre-decided price from the seller on or before expiry. The option buyer pays a premium (fee or compensation) to the options seller for this contract and hence is not obligated to exercise the option, unlike the seller.

Options buyers have limited risk (i.e. only up to the premium paid), however, the potential reward is unlimited to them theoretically.

On the other hand, Options sellers are those investors or traders, who receive the premium from the buyer to get into the agreement and have the obligation to honor the contract if the buyer wishes to exercise the option before expiry. Options sellers are also known as Options writers.

Note: Want to learn Options Trading from Scratch? Enroll in this best-selling Options trading course at FinGrad

Why would an investor use options?

When an investor or trader is buying an options contract, he/she is betting on the price to go in his favor. The price at which one agrees to buy the involved asset via the option is called the ‘Strike price’ and the price paid for having this right is called the ‘Options premium’.

Also Read: 21 Key Options Trading Definitions – Must Know Options Terms for Beginners!

Breaking Down Call and Put Options

The Call and Put options are the types of options that help traders and investors to capitalize on their views. Depending on the views (bulling or bearish), an options trade can buy or sell a Call or Put Option. Now, let us understand both of these ‘Call’ and ‘Put’ options in detail.

What is Call Option?

A call option is a type of option that gives the buyer the right to buy an underlying asset at a pre-determined price at a future date. The buyer of a call option generates profits only when the value of the underlying asset is rising upwards.

Basically, the real purpose of buying a call option is that the trader is expecting the price of the involved security to move up in the near future.

On the contrary, the trader who sellers (or writes) a call option, has an opposite (bearish) view that the price of the asset will not go higher than that pre-determined price.

What is Put Option?

A Put option is a type of option that gives the buyer the right to sell the underlying asset at a pre-determined price at a future date. The buyer of a put option generates profits when the value of the underlying asset is falling.

In simpler terms, a trader or investor buys a put option when he expects the price of the involved asset to fall in the near future. The trader who sells (or writes) a put option has an opposite (bullish) view that the price of that asset will not go below that pre-determined price.

Benefits of Options Contract

Here are a few key benefits of Options contracts:

1. As the name would suggest, the Options contract gives the right to option buyer to exercise his contract if he wishes to. If the current price doesn’t go in favor of the buyer of the contract he does not have to exercise his right, he stands to lose just the premium.
2. The one-time premium is the only fee that the option buyer has to pay to ride the momentum of the underlying price and be a part of a bigger game.
3. For example, if a trader wants to buy 1000 shares of Reliance, then at the current market price (Rs 2,400 per share), one has to shed out Rs 24,00,000 (Twenty-four lakhs). But one can express the same view by buying Call/Put option contracts with 2 lot sizes of 500 shares each).
4. If an option seller is of the opposite view to that of an option buyer, he can just sell the option contract and market profits through the premium received.
5. Return on investment for an option buyer is very high because the cost paid is just the premium and the potential return is unlimited.

Closing Thoughts

In this article, we have discussed what is options trading, how it works, and two types of options i.e. Call Option and Put Option.

To Summarize, an option is a contract that provides the buyer an option but not obligation to buy or sell the involved security or asset at pre-decided price within the contract expiration time. For traders and investors, it gives the power of leveraging with limited money as options are cheaper to purchase compared to buying a same number of shares in the marketplace.

The real purpose of buying a call option is that the trader or investor is expecting the price of the involved security to move up in the near future and vice versa for the call option seller. On the other hand, A Put option is bought by the trader or investor when he expects the price of an involved asset to fall in near future and vice versa for put option seller or writer.

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Top Gaming Stocks In India 2023 | Industry Overview & Stock List

Top Gaming Stocks In India: Don’t you miss the days when we could just come home and just plug into our favorite games? Luckily for us today we can do the same at our convenience thanks to smartphones.

The gaming industry has evolved over the last decade and thanks to the accessibility you can find people zoned into games like PUBG at every corner.

For those who understand the potential games have and also for those looking for industries with huge upsides in the future, we’ve got you covered.

In this article, we take a look at the gaming industry and we also take a look at the top gaming stocks in India. Keep reading to find out!

The Gaming Industry – Overview

To be honest, the gaming industry has always existed in different forms, be it board games or gladiator matches, or coin-operated machines in gaming zones.

These eventually evolved into 64-bit game consoles, PlayStations, and finally HD realistic games on our mobile phones. Companies are gearing up to be a part of the gaming industry, especially with the gaming experience that can come into existence with the Metaverse. 

The Gaming Industry in India

The Indian gaming industry is experiencing strong growth in terms of engagement, genres, monetization as well as the number of online gamers and might soon compete with gaming behemoths such as World of Warcraft. India is emerging as an investment opportunity as well as a talent hub for the world as it is becoming one of the top gaming markets in the world.

According to the latest BCG Sequoia India report, the gaming industry in India is 1% of the global gaming market, and it is growing rapidly. Currently, it is generating $1.5 billion in revenue and is expected to grow to $5 billion by 2025. 

Although the size of the Indian gaming market pales in comparison to the US and China it is still growing at a whopping 38% CAGR for the next 5 years!

A Quick Note: With the information that is mentioned in this article, we do not recommend buying or investing in any of the gaming stocks mentioned below. Investors are recommended to do complete research before investing.

Top Gaming Stocks in India

Though the gaming industry is growing, it is relatively new. Many investors find it difficult to find the top gaming stocks to make investments. Here’s a list of top gaming stocks in India and an overview of their fundamentals. 

Top Gaming Stocks in India #1: Nazara Technologies Ltd

Face Value (₹): 4	Market Cap (₹): 3,690.53 Cr
EPS TTM (₹): 6.35	Promoter’s holdings (%): 19.05
Debt to Equity Ratio: 0	Dividend Yield (%): 0
ROE (%): 6.05	Stock P/E: 87.87
Current Ratio: 3.68	Net Profit Margin (%): 8.16

Nazara Technologies came up with its IPO last year and investors were rewarded with stellar listing gains. It is a leading diversified gaming and sports media platform, based out of India. It was backed by ace investor Rakesh Jhunjhunwala, who owns its shares even now.

Nazara Technologies is present in emerging as well as developed global markets. Its offerings include interactive gaming, gamified early learning ecosystems, and eSports.

Its recognizable intellectual property includes CarromClash, Sportskeeda, Nodwin, and Kiddopia amongst others. Let’s take a look at its fundamentals.

Financial Analysis of Nazara Technologies Ltd

With a market capitalization of ₹3,690.53 Cr, Nazara Technologies is a small-cap stock in the IT-Software sector. Currently, the stock is trading at 3.4 times its book value, indicating excellent prospects for the future.

However, its promoter holding is low at 19.05%. It had decreased by 0.09% during the last quarter.

Another attractive feature of this stock is its zero debt. This indicates that the company hasn’t borrowed funds for operations. Adding leverage could lead to more returns for shareholders. Its current ratio, as well as quick ratio, is 3.68. This indicates that its assets are liquid.

Its PE ratio is higher than the industry average, indicating that the stock is overvalued. It indicates that investors are willing to pay a higher amount to buy its shares because of growth expectations in the future.

Its revenue grew during the last three years with an average of 54.12% while its net profit stood at Rs.50.7 crores in 2022 compared to Rs 13.6 Crores in 2021

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Top Gaming Stocks in India #2: Zensar Technologies Limited

Face Value (₹): 2	Market Cap (₹): 6,904.93 Cr
EPS (₹): 14.94	Promoter’s Holdings (%): 49.2
Debt to Equity: 0	Dividend Yield (%): 2
ROE (%): 16.9	Stock P/E: 20.41
Current Ratio: 2.73	Net Profit Margin: 9.94

Zensar Technologies Limited is a subsidiary of a well-known RPG group. This stock trades on the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE). It is an MNC with a presence in 20 countries across the globe.

It provides end-to-end services in IT development, business process outsourcing, consulting, and implementation. It provides an overall online game development process that has improved with Agile.

It has created a specialized Game Testing Centre of Excellence which aims at helping gaming companies to leverage the benefits of speed and efficiency.

It has testing services that are specially designed to address the unique challenges that are faced by the gaming industry. These include security, speed, faster games, overall user experience, and so on.

These testing services will help to build a cost-effective and robust operation.

Financial Analysis of Zensar Technologies Limited

Zensar Technologies has a market capitalization of ₹ 6,904.93 Cr making it a smallcap company. Its PE ratio is lower than the industry average. This indicates that it might be undervalued or is doing exceptionally well compared to its past trends.

Its return on equity for the last years was 16.4%, which is good. It has a high current ratio and a quick ratio of 2.44. This is higher than the ideal. However, it indicates that the company is in a good position to repay its creditors.

Its debt-to-equity ratio is 0, which means that it did not borrow finance for its operations. Its promoters hold a 49.2% stake in the company and this has remained stable for a few quarters. It has a net profit margin of 9.94%.

Top Gaming Stocks in India #3: Tata Consultancy Services Limited

Face Value (₹): 1	Market Cap (₹): 11,82,184.61 Cr
EPS (₹): 115.19	Promoter’s Holdings (%): 72.3
Debt to Equity: 0	Dividend Yield (%): 2.84
ROE (%): 47.26	Stock P/E: 28.05
Current Ratio: 2.53	Net Profit Margin: 18.76

Tata Consultancy Services is an Indian multinational company that is engaged in providing IT services and consulting. It is among the most valuable IT brands worldwide.

It is the biggest IT company in India in terms of market capitalization. Its services include Mobile apps, Virtual reality games, game development, cloud solutions, automation and AI, and more.

Financial Analysis of Tata Consultancy Services Limited

TCS has a market cap of 11,82,184  Cr, making it a large-cap company. Its PE ratio is almost the same as industry PE. It has had a good average ROE for the past three years, at 59.07%.

Its debt-to-equity ratio is negligible, indicating that it has little to no borrowings. It has an ideal current ratio and a quick ratio of 2.67. Its promoter’s holdings are very high at 72.3%, indicating their confidence in the company.

It has had average revenue growth for the last three years, with an average of 12.83%. It has had weak net profit growth over the previous three years, at an average of 9.23 %.

Top Gaming Stocks in India #4: Infosys Limited

Face Value (₹): 5	Market Cap (₹): 5,22,425.53 Cr
EPS (₹): 58.07	Promoter’s Holdings (%): 15.14
Debt to Equity: 0	Dividend Yield (%): 1.16
ROE (%): 32.3	Stock P/E: 21.68
Current Ratio: 1.81	Net Profit Margin: 16.43

Infosys Limited is an Indian MNC that provides information technology, outsourcing services and business consulting. It is one of the largest IT companies in the world and the second-largest in India in terms of market capitalization.

It has experienced developers who have worked in AR/VR and 3D games. Need we say more? Let’s take a look at some of its fundamentals:

Financial Analysis of Infosys Limited

Infosys has a market capitalization of Rs. 5,22,425  Cr, making it a large-cap stock. Its promoter’s holding is at 15.14 %, which is good, considering that it is a large company. Its PE is at par with the industry average.

It has had a good average ROE for the last three years, at 29.74%. Its current ratio and quick ratio, both are at 2.12, which is within the ideal range. It has a lower net profit margin as compared to the previous three years.

It has had revenue growth and net profit growth for the last three years with an average of 17.36 % and 13.24% respectively. Its debt-equity ratio is non-significant, indicating that it has little or no borrowings.

It has a good stock PE of 21.68. Its return on equity is very good at 32.3%.

Top Gaming Stocks in India #5: Tech Mahindra Limited

Face Value (₹): 5	Market Cap (₹): 1,01,006.06 Cr
EPS (₹): 49.59	Promoter’s Holdings (%): 35.18
Debt to Equity: 0.06	Dividend Yield (%): 3
ROE (%): 22.12	Stock P/E: 20.92
Current Ratio: 1.96	Net Profit Margin: 12.6

Tech Mahindra Limited, again, is one of the top Indian multinational companies in the IT Sector. It is a part of the Mahindra Group and is a leading provider of consulting, digital transformation, and business reengineering services and solutions.

It entered the gaming business in 2015 and built gaming technologies and platforms with a focus on PC and mobile games. It creates platforms that can be used by game builders. It focuses on big data, the Internet of Things, virtual reality, and management services.

Financial Analysis of Tech Mahindra Limited

Tech Mahindra has a market cap of 1,01,006  Cr, making it a large-cap stock. Its PE ratio is lower than the industry average, which means that it is undervalued. It has had a good average ROE for the last three years at 20.02%.

It has a low debt-to-equity ratio of 0.06, which means that it is using little leverage. Its current ratio is 1.96.

They are in the ideal range. It’s 3-year revenue growth and profit growth have been low at 8.72 % and 9% respectively. It has a healthy promoter’s shareholding at 35.18%.

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Top Gaming Stocks in India #6: Delta Corp Limited

Face Value (₹): 1	Market Cap (₹): 5,647.61 Cr
EPS (₹): 9.77	Promoter’s holdings (%): 33.28%
Debt to Equity Ratio: 0	Dividend Yield (%): 0.38
ROE (%): 3.51	Stock P/E: 21.57
Current Ratio: 3.9	Net Profit Margin (%): 11.07

Delta Corp Limited was incorporated in 1990 and is engaged in the businesses of casinos, online gaming, real estate, and hospitality.

Along with its subsidiaries, it owns and operates casinos in Goa, Sikkim, and Nepal. It acquired Gauss Networks Private Limited and ventured into the fast-growing online gaming sector in India.

For quite some time, it was the only listed gaming stock in India. This has helped it to secure a leadership position in the market. It operates casinos: online, electronic, and live.

Let’s take a look at some of its fundamentals. Currently, ace investor Rakesh Jhunjhunwala has about 3.25 Crores worth of holding in this stock.

Financial Analysis of Delta Corp Limited

Delta Corp Limited has a market capitalization of ₹5,647.61 Cr, making it a small-cap stock. Its PE ratio is higher than the industry’s average PE.

It is trading at 2.63 times its book value. This means that investors believe that the company has good future prospects.

It has a good current ratio of 3.9 and a quick ratio of 3.30. This indicates that its assets are pretty liquid. Its sales have still not reached pre-Covid heights. Its promoter holding is low at 33.28%, which is low.

Its return on equity for the year was 3.51%. Its debt-to-equity ratio is 0. In general, it is better to invest in companies with a debt-to-equity ratio lower than other gaming companies in India

In Closing

We had a look at some of the top gaming stocks in India that are listed. A few other companies that are also doing well in the gaming sector in India are Hyperlink InfoSystem, Genieee Games, Dhruva Interactive, GSN Games India, Fgfactory, Orangesoft, Unanimous Studios, Scand, and White Widget.

The gaming industry is relatively new and it has been growing. Existing companies have verticals dedicated to gaming, but there are many new and emerging companies that are solely focused especially on online gaming.

Nazara Tech is one such gaming stock in India. We hope to see many more gaming companies expanding and getting listed in India. That’s all for the article on top gaming stocks in India. Happy Investing!

You can now get the latest updates in the stock market on Trade Brains News and you can even use our Trade Brains Portal for fundamental analysis of your favorite stocks.

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Indian Auto Ancillary Industry – Top Companies in 2023!

A Study on top companies in the Indian Auto Ancillary Industry: The Auto Ancillary Industry includes companies that provide supporting equipment to the primary products of a vehicle company. This support may be in the form of Tyres, Batteries, Brakes, Suspension, etc.

Such industries enable vehicle companies to focus on their core competencies while they are able to produce quality parts they specialize in. The high growth prospects of the Auto Ancillary Industry make it one of the sunrise industries in the Indian markets. Today, we take a look at the Auto Ancillary Industry in India and its top players. Let’s get started.

The Auto Ancillary Industry in India

The Auto Ancillary sector from India is mainly focused domestically and does not play a large role globally. But this tips the scale in its favor when we look at the strides it can make in terms of growth. An Auto Ancillary Industry is heavily dependent on the Automobile Industry.

Luckily enough the Indian Automobile industry is the world’s fourth-largest, with the country currently being the world’s fifth-largest manufacturer of cars and seventh-largest manufacturer of commercial vehicles in 2021.

The Auto Component Manufacturers account for 7.1% of India’s Gross Domestic Product (GDP) and employ as many as 5 million people directly and indirectly each.

As per Automobile Component Manufacturers Association (ACMA), automobile components export from India is expected to reach $ 80 billion by 2026. The Indian auto components industry aims to achieve $200 billion in revenue by 2026.

Top Auto Ancillary Companies in India

A. Tyre Segment

1. MRF Limited

MRF Limited is India’s Largest Tyre Company in terms of total sales and MCAP. The company initially started off in Madras as a balloon factory.  It was in 1952 that the company decided to enter rubber manufacturing.

MRF today has come a long way to not only have a quarter of the market share but also extended its presence to 65 countries. MRF makes and sells tyres not just for passenger cars and motorcycles, but also for trucks and buses, farm machinery, Pickup, 3-Wheeler, etc. The company also manufactures other rubber products such as conveyor belts and toys.

2. Balkrishna Industries Limited (BKT)

Balkrishna Industries Limited (BKT) is a leading manufacturer that specializes in the Off-Highway tire market. This includes specialist segments like mining, earthmoving, agriculture, construction, and other industrial tyre segments.

The company was founded in 1987 and since then has achieved the status of one of the best quality tyre brands in India. BKT has developed into a global player in the Off-Highway tire industry with a 6% global market share. Balkrishna Industries predominantly caters to the replacement market in North America and Europe. The  Italian football second division, Serie B is known as Serie BKT after Balkrishna Industries purchased naming rights.

3. Apollo Tyres

Apollo Tyres was founded in 1972 and is headquartered in Gurgaon, India. Since then it has become one of the leading global suppliers of tires and boasts a presence in over 100 countries. The company markets its products under two brands Apollo and Vredestein.

If tyres that come as original fitment with new vehicles are considered then Apollo Tyres takes the top spot. The company currently makes radials for cars, bikes, and a host of other commercial vehicles.

4. CEAT Ltd

CEAT is one of India’s leading tire manufacturers today and has a strong global dominance. It was founded in 1958 and is now headquartered in Mumbai. CEAT, however, was not originally an Indian company. It was originally founded in Italy(1924) and the name CEAT was an abbreviation for ‘Cavi Elettrici e Affini Torino’. It was in 1982 that the RPG Group acquired the company.

Today, it makes tyres for cars, bikes, trucks, SUVs, Auto-rickshaws, buses, tractors, and various other vehicles. CEAT produces over 165 million tyres every year and offers the widest range of tires to all segments and manufacturers.

5. Goodyear India

Goodyear is one of the world’s oldest and largest tyre companies. It was established in the year 1898 and is one of the most recognizable brands in today’s age. Goodyear has been in the Indian markets since 1960 and since then has developed a good understanding of what the Indian consumer wants and delivers accordingly.

Its products in the Indian markets include value offerings, high-performance radials, and rugged, off-road-ready tyres. Apart from this, Goodyear is known for supplying radials to Formula One cars and also serves airplanes.

B. Battery Segment

1. Exide Industries

Indian company Exide is one of the biggest manufacturers of batteries in the whole world. The company as old as independent India itself was incorporated as  Associated Battery Makers (Eastern) Ltd. The company was renamed Chloride Electric Storage Co (India) Ltd and then again in 1995 the name was changed to Exide Industries.

Exide today forms a large portion of India’s battery exports. The company supplies automotive and industrial lead-acid batteries ranging from 2.5Ah to as high as 20,500Ah.

2. Amara Raja Batteries

Amara Raja Batteries is one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications. It sells its products under the brand Amaron and Powerzone. Amaron is the second-largest-selling automotive battery brand in India. Powerzone on offers a wide range of inverters, home UPS and inverter batteries.

The company not only makes batteries for distribution in India, but exports its products in Africa, Asia Pacific, and the Middle East.

3. HBL Power Systems LTD

HBL Power Systems LTD offers specialized batteries and finds its biggest buyers in the aviation industry. The company was founded in 1997 and successfully developed its first product i.e. an aircraft battery. Over the years the company also began manufacturing custom-designed, high-quality, cost-effective batteries to meet the needs of various core industries.

Apart from airways, the firm distributes its batteries to other sectors like railways, defense, and other heavy industries.

C. Other Auto Ancillary Industry Companies

1. Bosch Ltd

Bosch is originally a German engineering and technology MNC founded in 1886. The company entered India in 1922 but ventured into auto ancillary only in 1951 after purchasing a 49% stake in Motor Industries Company Ltd (MICO). In 2008 MICO was renamed Bosch Ltd.

Although the company functions in areas like Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology 84% of its revenues from India come from its automotive business. Bosch currently has a turnover of Rs. 11,782 crores and 18 manufacturing sites, and seven development and application centers.

2. Motherson Sumi Wiring India

Motherson Sumi Systems Limited was demerged into Mother Sumi Wiring India and Samvardhana Motherson International. It was established in 1986 through a  joint partnership between Samvardhana Motherson Group and Sumitomo Wiring Systems of Japan.

Moterson Sumi Wiring is engaged in the business of providing full-system wiring harnesses, harness components, and other electric wires to OEMs. It has 23 facilities across India. It builds solutions for passenger cars, two-wheelers and recreational vehicles, commercial vehicles, motorcycles and three-wheelers multi-utility vehicles, farm and material-handling equipment, off-highway vehicles, and more.

3. Samvardhana Motherson

After the demerger, Samvardhana Motherson is involved in two segments chiefly: vision systems and modules & polymer products.

The company supplies products such as interior mirrors, camera-based detection, simple plastic parts, integrated molds, passenger car HVAC & compressors, body control modules, struts, shock absorbers, and more to OEMs globally.

It hopes to become a diverse player to 3CX10 meaning that exposure to any nation, component or client should not be more than 10% of its total turnover by 2025.

4. Endurance Technologies

Endurance Technologies Limited was incorporated on December 27, 1999. The company is one of India’s leading automotive component manufacturing companies. The company manufactures and supplies a diverse range of components.

Its products include aluminum Die–Casting Products, two-wheeler aluminum alloy wheels, shock absorbers, front forks for motorcycles and hydraulic and gas-charged dampers, struts, gas springs clutches, friction plates, hydraulic disc brakes, rotary brake discs, hydraulic drum brakes, tandem master cylinders. The company has 27 manufacturing plants across India, Germany, and Italy.

5. WABCO India Limited

WABCO India Limited is a leading supplier engaged in manufacturing automotive components and related services. The Company provides safety and vehicle control solutions to the commercial vehicle segment of the automotive industry.

WABCO is also engaged in the manufacture of air brake actuation systems for commercial vehicles. The Company is also involved in various other segments, such as off-highway, defense, luxury buses, cars, and trailers.

6. Sundram Fasteners

Sundaram Fasteners established in 1966 is a part of the TVS Group. Over the years they have grown into global leaders, manufacturing critical, high-precision components for the automotive, infrastructure, windmill, and aviation sectors.

In Auto Ancillaries the company produces iron powder, tappets, shafts and hubs, couplings and gears, gear shifters, automotive pumps, radiator caps, hot forged components, cold extruded parts, powder metal components, and high-tensile fasteners.

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4-Wheeler Industry in India: Indian Automobile Sector Analysis!

list of all the companies in the Auto Ancillary Industry

COMPANY	Industry	Market Cap (Rs Cr.)	PE Ratio	Dividend Yield (%)
Samvardhana Motherson International	Auto Ancillary	51,046.78	53	0.47
Motherson Sumi Wiring India	Auto Ancillary	23,710.4	60.03	1.32
Balkrishna Industries	Tyres & Allied	41,412.41	35.32	1.31
Bosch	Auto Ancillary	57,050.43	41.41	1.45
MRF	Tyres & Allied	41,812.56	54.38	0.23
Sona BLW Precision Forgings	Auto Ancillary	29,273.71	74.06	0.23
Endurance Technologies	Auto Ancillary	19,027.46	39.81	0.57
Exide Industries	Batteries	15,907	3.46	1.32
Apollo Tyres	Tyres & Allied	23,416.17	29.66	1.7
Amara Raja Batteries	Batteries	10,431.52	15.95	0.84
Sundaram-Clayton	Auto Ancillary	8,045.39	12.19	1.23
CEAT	Tyres & Allied	6,944.88	37.3	0.32
Varroc Engineering	Auto Ancillary	4,352.12	NA	NA
Suprajit Engineering	Auto Ancillary	5,146.82	32.22	0.58
JK Tyre & Industries	Tyres & Allied	5,052.66	26	1.28
Jamna Auto Industries	Auto Ancillary	4,137.88	23.96	1.51
Minda Corporation	Auto Ancillary	6,449.17	27.05	0.48
Eveready Industries India	Batteries	2,166.08	603.54	0
JTEKT India	Auto Ancillary	2,701.51	38.16	0.54
JBM Auto	Auto Ancillary	9,841.12	54.08	0.23
Gabriel India	Auto Ancillary	2,383.77	18.99	1.39

Closing Thoughts

The auto ancillary industry is in the growth phase and is expected to grow at a double-digit CAGR between the period 2019-2026. Although investing in the Auto ancillary industry seems to be attractive it is important to note that all rumors about the automobile sector are also felt in the auto ancillary industry. These include impacts from festival seasons, credit crunch, bank interest rates, fuel costs, etc.

Another important factor that is expected to have a significant impact on the industry in the coming years is the push for Electric vehicles. Hence for inventors looking for long-term investments selecting a company that is in tune with the changing needs of the electric segment would be optimal.

Stay updated on the latest Stock Market News and Corporate Actions NSE with Trade Brains Portal, while also keeping an eye on the Top Gainers Today in NSE with our Stock Heatmap feature.

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