EV tailwinds? 5 auto ancillary stocks with upside potential of up to 37%

As the large auto companies make a comeback, even the auto ancillary stocks are coming back on the attention list. We take a look at companies where analysts are projecting further upside in the next 12 months. The list is based on upside estimated by the analysts, with the highest potential stock coming on the top of the list.

Few weeks back an auto ancillary major announced the opening of two plants for Electric Vehicle space only. Probably this is just the beginning, more auto ancillary companies, some of which have been readjusting their business model toward EV space, would be announcing it sooner than later. We take a look at companies where analysts are projecting further upside in the next 12 months. The list is based on upside estimated by the analysts, with the highest potential stock coming on the top of the list.

Macro environment in which auto ancillaries companies operate have turned favourable after a long period of time. Sometimes it is LCV and HCV which drives the demand, at other point time, better four and two wheeler numbers are pushing the demand up for auto ancillary companies, some of which are changing their business model to stay relevant in times of EV. We take a look at companies where analysts are projecting further upside in the next 12 months. The list is based on upside estimated by the analysts, with the highest potential stock coming on the top of the list.

In the last five years, many auto ancillary companies have been trying to stay relevant to the EV space. Some got into EV space through organic routes as their existing product lines were still relevant to an electric vehicle, a few went through an inorganic route. Over the next one to two years, there would be shakeout in the auto ancillary space. The ones which are relevant to EV space are likely to get premium; others will probably just survive. So, while looking at an auto ancillary unit it would be worthwhile to figure out abouts its probability of staying relevant in EV space rather than what is happening to its margins and other financial factors in the short term. We take a look at companies where analysts are projecting further upside in the next 12 months. The list is based on upside estimated by the analysts, with the highest potential stock coming on the top of the list

As the economic activities continue to pick pace, logistic companies are back on their feet. They had suffered during covid period and due to rising oil prices, a couple of them did some internal restructuring to put things back on track. Now there are more tailwinds than headwinds. The list only includes companies which have an institutional shareholder holding of at least 8 percent.The list is based on upside estimated by the analysts, with the highest potential stock coming on the top of the list.

Capital good companies had faced tough times for many years. Given the fact that hardly any capacity buildup was taking place in any industry, a number had to change their product portfolio and had to live with very low margins. But all the efforts have now started to show some results. Given the performance of the stock, a large majority of these stocks have hold recommendations from the analysts.

Stock Reports Plus, powered by Refinitiv, has compiled a list of mean price targets for banking stocks based on the latest report dated April 25, 2023. The list includes stocks with a count of analysts evaluating them over the next 12 months, with a filter applied to exclude stocks with fewer than 10 analysts and upside potential of less than 20%. The list has been sorted based on the estimated potential upside, with City Union Bank Ltd showing the highest at 38.8%. ETPrime members have access to Stock Reports Plus.