WABCO India Ltd | Auto Ancillaries Sector | 2019 Multibagger shares to invest in Indian Stock Market

India is one of the fastest growing economy in the World. This growth cannot happen without core sectors growing. If you are interested, here are top 5 companies which one must invest for long term growth. One of these companies is Wabco India Ltd. This is a gem potential multibagger stock, which should be one of the top Indian stock to buy.

Here is a detailed analysis of Wabco India Ltd. You can read more below:

About the company

BSE: 533023 

NSE: WABCOINDIA 

ISIN: INE342J01019 

SECTOR: AUTO ANCILLARIES

WABCO India is a subsidiary of WABCO Holdings Inc, USA, a leading global supplier of technologies and services that improve the safety, efficiency, and connectivity of commercial vehicles. WABCO Holdings Inc. through WABCO Asia Private Limited, Singapore holds 75% stake in WABCO India (as per the shareholding pattern as on 30 September 2018).

WABCO India operates five manufacturing facilities across India, an advanced technology development center, a vehicle testing facility and a nation-wide aftermarket distribution and services network. Headquartered in Chennai. It is a debt-free company.

Major products

1) Advanced braking systems
2) Conventional braking products and related air assisted technologies and systems. 

Client Engagements

Recently WABCO India has signed an agreement with Escort to support the development of the new automated agricultural tractor concept in India. Apart from that WABCO has signed a multi-year agreement with Mahindra & Mahindra to supply vacuum pumps in 2016. It's customers also includes Ashok Leyland, Tata Motors, Vehicle Factory (Jabalpur), Bharat Earthmovers, Tafe, Volvo, Sutlej, Caterpillar, Eicher Motors, Swaraj Mazda, Force Motors, and Tata Cummins (Engines).

Recent positive indicators

• Recently WABCO India has signed an agreement with Escort to support the development of the new automated agricultural tractor concept in India. 
• Multi-year agreement with Mahindra & Mahindra to supply vacuum pumps in 2016. 
• Prestigious supplier awards :
•   "Best Supply Chain Transformation" award from Cummins India, 
•   "Outstanding contribution to Technology Innovation" award from Volvo Eicher, 
•   "Cost reduction" award from Swaraj Mazda Isuzu. 

Opportunities

• The International Monetary Fund (IMF) is projecting GDP growth to reach 7.8% in 2018-19.
• The Company has also expanded into new segments like off-highway, defense, luxury bus, car and trailers
• Preparing a roadmap for newer technologies like ADAS, Door System, Smart Suspension.
• During 2017-18, the company has expanded its plant at Jamshedpur to support the volume growth. 
• Distributors are continuing to increase their presence in B & C towns and that is resulting in the availability of genuine parts in remote locations

Risk

• Cyclic in nature.
• Increase in raw material price. E.g. Steel, Aluminum

The expected range of price

Share bought around INR 5300-5800 in Q3 2018-2019 should be around INR 8500 to 9000 in the next 18-24 months.

Disclaimer: This is not an advice or recommendation to buy the stock. The illustration is for educational purpose only. Please check with your investment advisor before investing. Please read the detailed disclaimer below.

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Amara Raja Batteries Ltd | Battery Sector | 2019 Multibagger shares to invest in Indian Stock Market

How to find a fundamentally strong share? This is the holy grail every investor try to find out. It is not easy to find good quality stocks in India market. It needs deep sector analysis as well as overall share market analysis. We found 5 stocks to invest during election time. One of them is Amara Raja Batteries, for which Annual Result Analysis and Q1 result analysis is also published.

Here is a detailed analysis of Amara Raja Batteries Ltd, a must-watch for all. You can read more below:

About the company

BSE: 50008
NSE: AMARAJABAT
ISIN: INE885A01032
SECTOR: Commercial and Residential Batteries

Amara Raja Batteries Limited (ARBL) is a flagship company of the Amara Raja Group. Galla family holds 28% equity while another 24% is held by a private holding company. Earlier Johnson Controls Inc, USA was one of the major stockholder, which is the technology leader and is one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in the Indian storage battery industry.

Major products

• Industrial batteries
• Automotive batteries

Client Engagements

ARBL has prestigious original equipment manufacturers like Maruti Suzuki India Limited, Hyundai Motors India Limited, Ford India Limited, Tata Motors Limited, Mahindra and Mahindra Limited, Honda Cars India Limited, Renault Nissan, Honda Motorcycles & Scooters India Private Ltd, Royal Enfield, Bajaj Auto Ltd, and many more as its clients. The Company's Industrial and Automotive batteries are exported to 32 countries across the globe.

Positive indicators

• It has a 24% market share in OEM (Original Equipment Manufacturer) business.
• The company enjoys a 30% market share in the replacement market.

Opportunities

• Introduction of electric vehicles in India is going to create a boom for the overall battery sector.
• Growth in the auto industry will increase demand for automotive batteries.
• Growth in the industrial segment with more industries setting up in India under the Indian government flagship Make-in-India project.
• Growth in renewable energy source like Solar energy needs storage batteries.

Risk

• Very research incentive sector. Constant improvements are required to remain in the market.
• With Lithium ION Batteries:
• It needs 8 hours charging.
• 30% of energy is wasted in charging and discharging.

The expected range of price

Share bought around INR 600-700 in Q3 2018-2019 should be around INR 950-1050 in next 18-24 months.

Disclaimer: This is not an advice or recommendation to buy the stock. The illustration is for educational purpose only. Please check with your investment adviser before investing. Please read the detailed disclaimer below.

Read More