Auto ancillary stocks in focus: Gabriel, Sansera, Uniparts hit record highs

The outlook remains positive, supported by expected growth in domestic vehicle production, continued expansion of the aftermarket, and sustained policy support for localisation, says Gabriel India.

 

Share prices of auto ancillary companies were in demand with most frontline stocks hitting multi-year highs on healthy demand outlook.

 

Craftsman Automation, Sansera Engineering, SJS Enterprises, SPR Auto Technologies, Uniparts India, Gabriel India, Pricol and Samvardhana Motherson International hit their respective all-time highs, while Rajratan Global Wires, Sona BLW Precision Forgings and Ramkrishna Forgings touched their respective 52-week highs.

 

These stocks rallied up to 7 per cent on the BSE in Tuesday’s intra-day deals. In comparison, the BSE Sensex quoted 0.06 per cent higher at ₹78,688 at 11:13 AM.

 

What’s driving Gabriel India's 99% surge from its March low?

 

Share price of Gabriel India hit a new high of ₹1,584.20, gaining 4 per cent on the BSE in intra-day trade. In the past month, the stock rallied 29 per cent. Further, in the past two months, it surged 56 per cent. The stock price of Gabriel India zoomed 99 per cent from its 52-week low of ₹795.80 touched on March 30, 2026.

 

 

According to Crisil Ratings, the ongoing consolidation of automotive businesses and strategic partnership interests under Gabriel materially strengthens its business risk profile and strategic importance within the ANAND Group.  Through Project Rise and Project Jupiter, Gabriel evolved from a predominantly ride-control systems manufacturer into the group's principal automotive platform with a broader earnings base, greater diversification and increasing relevance in the group's long-term automotive strategy, the rating agency said.

 

The broader business mix, increasing content-per-vehicle opportunities, scale benefits and growing contribution from technology-intensive businesses are expected to support operating margins of around 9-10 per cent, healthy cash generation and sustained return metrics over the medium term. Earnings diversity is also expected to improve, with increasing contribution from joint ventures and associates expected to form a meaningful component of overall profitability and cash flow generation, Crisil Ratings said in its rationale.

 

Auto ancillary sector outlook

 

The structural trends, including electrification, premiumisation, digital integration, and regulatory-driven emission transitions, are reshaping the industry, increasing vehicle complexity and content per unit. These factors continue to support long-term demand for advanced automotive components despite near-term cyclical headwinds.

 

The Indian auto component industry maintained a strong growth trajectory during FY25-26, supported by healthy domestic vehicle production, sustained replacement demand and continued progress in localisation initiatives. According to the Automotive Component Manufacturers Association of India (ACMA), the sector expected to sustain momentum and grow by 8–10 per cent in FY26-27, Gabriel India said in its FY26 annual report.

 

The outlook for the auto components industry remains positive, supported by expected growth in domestic vehicle production, continued expansion of the aftermarket, and sustained policy support for manufacturing and localisation. However, evolving technology requirements and continued dependence on imports for advanced components are expected to drive investments in localisation, capability development, and innovation, which will remain critical to enhancing the industry's long-term competitiveness, the company said.

 

Meanwhile, post June 2026 quarter (Q1FY27), Pricol’s management said the increase in raw material prices, inventory holding costs and freight expenses, together with the depreciation of the Indian rupee, adversely impacted margins. 

 

Although the company initiated cost optimisation, productivity and pricing interventions, only a portion of these additional costs is recoverable from customers typically with a lag of three to six months. Consequently, these pressures are expected to continue to weigh on near-term profitability. The broader operating environment also remains volatile, given ongoing geopolitical developments and disruptions across global trade and supply chains, the management said.  ==================================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.