Auto Ancillaries is a long term growth story in India.
I have been pretty bullish on Auto Ancillaries as a long term India story. There are many good picks currently and one of the interesting ones I feel is Lumax Auto Tech.
Recent panic has seen many of the Auto ancillaries trade all time lows. This led me to research recently about all my picks in this sector. Best of the lot I think is this little known company.
Have been following this for a few years since its IPO. Pretty strong promoter presence, nice dividend yield (trading in 90 - 93 range, dividend yield of ~6.2%), strong growth prospects since they have a strong presence in Auto lighting segment (Near monopoly at Bajaj) and others like two wheeler chassis, Adjustor Motors, Exhaust systems & Mufflers, Fork & Handle Bar Assemblies, Petrol tanks, etc to two and three wheelers.
I didn't have enough money in 2008 when I thought this could be a nice bet - just had another buying opportunity. Seems like a nice investment for next 5 - 10 years.
Ciao till next time...Harsha
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