Global headwinds may hit growth prospects of auto parts suppliers

Mutual funds redirect record inflows to fuel IPO boom, hitting 25-year high in new listings while selling bank and pharma stocks

Stocks of automotive (auto) component makers that draw a majority of their revenue from key overseas markets are likely to face pressure amid demand weakness, tariff uncertainty, margin stress, and stretched valuations. 

Bharat Forge, Samvardhana Motherson International (Samil), Sona BLW Precision Forgings (Sona Comstar), and Balkrishna Industries are expected to bear the brunt, as at least 55 per cent of their revenue comes from global markets. 

These stocks have lagged the broader sector. Their average return over the past six months and one year stands at 4.5 per cent and minus 6 per cent, respectively, compared with gains of 19