Auto ancillary stocks in focus; Lumax Auto, Lumax Industries zoom over 10%

Minda Industries, JMT Auto, Shivam Autotech, Automotive Axles and Ucal Fuel Systems have rallied over 5% on the BSE

Shares of auto ancillaries companies, mostly mid-and-small sized have rallied by up to 20% on the BSE on back of heavy volumes.

DK Jain Group companies - Lumax Industries (16% at Rs 538) and Lumax Auto Technologies (14% at Rs 387) have rallied more than 10% on the BSE in an intra-day trade.

Lumax Auto Technologies has soared 14% to Rs 387 after the company announced its entry into the Indian aerospace and defence sector by formation of its new joint venture (JV) with SIPAL S.p.A of Italy.

The proposed JV is expected to become operational in FY 2017 and will be a full service provider for all type of integrated logistic support engineering having a strong knowledge and experience in technical publishing, product/manufacturing engineering, process engineering, design and manufacture of toolings, design of systems of production lines related to the aerospace, defence & automotive sectors.

Explaining the current scenario, Mr. Anmol Jain, Managing Director of Lumax Auto Technologies said that Global aerospace majors have started focusing on India to source components for their Indian & Global requirements and auto component manufacturers in India, with their proven manufacturing capabilities make ideal candidates as supply chain partners in aerospace & defence.

Lumax Automotive Systems has locked in upper circuit of 20% at Rs 55.20 on the BSE after the company said it files application with the Board for Industrial and Financial Reconstruction (BIFR) for determination of the measures which shall be adopted with respect to the company.

Minda Industries has surged 9% to Rs 922, also its record high on the BSE. Thus far in November, the stock zoomed 77% from Rs 570 after the company said its net profit after excluding tax-adjusted exceptional items has increased by 110% year on year to Rs 26 crore in September 30, 2015 (Q2FY16) quarter.

The company said its horns division has received export order from Renault for Brazil and new Orders from Maruti Suzuki India and Tata motors in domestic market.

JMT Auto (up 10% at Rs 77.60), Shivam Autotech (7% at Rs 63.35), Automotive Axles (6% at Rs 735) and Ucal Fuel Systems (5% at Rs 115) are among others that have rallied more than 5% each on the BSE.