WABCO India Ltd | Auto Ancillaries Sector | 2019 Multibagger shares to invest in Indian Stock Market ~ Earning Folio Research & Investments

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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