Auto ancillary stocks extended their remarkable rally on Wednesday, with most frontline companies rallying up to 15% during intra-day trading on the BSE. According to Business Standard, ASK Automotive, Bosch, Craftsman Automation, Gabriel India, Menon Bearings, Minda Corp, Pricol, Sansera Engineering and Uniparts India hit their respective all-time highs, while Rajratan Global Wires, Sona BLW Precision Forgings and Ramkrishna Forgings touched their 52-week highs. In comparison, the BSE Sensex was up 0.33% at ₹78,687 at 11:42 AM, significantly underperforming the auto ancillary sector's strong momentum.
ASK Auto emerged as the standout performer, zooming 15% to ₹632.40 following exceptional Q1FY27 results. As reported by Business Standard, the stock witnessed a 10-fold jump in average traded volume with a combined 5.6 million equity shares changing hands on NSE and BSE. The company achieved its highest-ever quarterly revenue of ₹1,361 crore, representing a 52.1% year-on-year growth. EBITDA increased 32.7% YoY to ₹164 crore, while PAT jumped 28.8% YoY to ₹85 crore. The management expressed confidence in outperforming industry growth and focusing on sustainable bottom-line enhancement to enhance shareholder value.
Goldman Sachs initiated coverage with 'Buy' ratings on two major auto ancillary companies, citing their strategic transformation into adjacent supply chains. According to Business Standard, the brokerage firm initiated coverage with a 'Buy' rating on Sansera Engineering with a target price of ₹4,130, highlighting the company's machining transition to semiconductor and aerospace growth engines. Similarly, Craftsman Automation received a 'Buy' rating with a target price of ₹11,600, leveraging its engine block specialist position for global data center build-out opportunities. The firm noted that Indian auto parts makers are commencing a transformation journey into semiconductor wafer fabrication equipment (WFE), defense, data center power generation, electric vehicle parts and aerospace sectors.
The latest Q1 FY27 earnings data reveals robust performance across multiple sectors, with India Inc. reporting strong earnings for Q1 with many companies achieving double-digit revenue growth. According to LiveMint Data Research desk, about 31% of companies reported robust revenue growth of more than 25%, with 14.84% recording growth exceeding 50% and another 16.33% posting growth in the 25–50% range. Notable performers include Laxmi Organic Industries with 216.56% jump in consolidated net profit to ₹67.72 crore and 39.75% revenue growth to ₹968.34 crore, Polycab India achieving 32.8% profit growth to ₹796.65 crore with 39% revenue increase to ₹8,209.73 crore, and Bajaj Auto posting 45.9% profit increase to ₹3,225.63 crore with 65% revenue surge to ₹21,688.83 crore. The strong performance spans diverse industries including chemicals, cables and wires, defence, automobiles and real estate, demonstrating resilient business momentum across sectors.
