Top Automobile Stocks in India: Mahindra and Mahindra, Bosch, Bajaj Auto and More – Based on 1-Yr Returns

Auto stocks in India have shown strong performance, driven by the rapid growth of the automobile sector. The Nifty Auto index has consistently outpaced the Nifty50 over the last decade, despite recent challenges like regulatory shifts and supply chain issues.

What Are Automobile Stocks?

Automobile stocks represent shares of companies involved in designing, manufacturing, and selling vehicles. This includes car makers and auto ancillary firms that supply essential components and parts. In India, the automobile sector is a vital economic driver, contributing significantly to the country’s growth. 

Companies in this industry produce diverse vehicles, including cars, trucks, and two-wheelers, catering to both domestic and global markets. Many investors keep a close watch on auto stocks in India for potential investment opportunities.                                

Top Automobile Stocks Based on 1 Year Returns

Note: The top auto sector stocks in India are derived using Screener and are ranked based on 1 year returns. The data is as of 1.02 PM December 2, 2024.

Top Auto Stocks in India

Mahindra & Mahindra Ltd
Mahindra & Mahindra, established in 1945, is a dominant player in automobiles, especially SUVs, tractors, and commercial vehicles. The company reported a 35.05% increase in net profit, reaching ₹3,170.72 crore in the September 2024 quarter, compared to ₹2,347.75 crore in the same period of the previous year. 

Sales also grew by 9.94%, rising to ₹37,689.04 crore from ₹34,281.20 crore during the corresponding quarter in September 2023.

Bosch Ltd
Established in 1951, Bosch Ltd is a leading name in the auto components industry. It produces a wide range of automotive parts, mobility solutions, and technology-driven products. 

Over the past 5 years, the company’s revenue has grown at an annual rate of 7.6%, slightly below the industry average of 8.46%. In FY24, total revenue reached ₹18,293.30 crore.

Bajaj Auto Ltd
A global leader in two- and three-wheelers, Bajaj Auto Ltd, established in 1945, is known for its motorcycles and auto-rickshaws. Over the past 5 years, revenue has grown at an annual rate of 7.53%, exceeding the industry average of 7.38%. Net income has also seen a yearly growth rate of 9.36%, outperforming the industry average of 7.85%.

CEAT Ltd
Founded in 1958, CEAT Ltd is a key player in the tire manufacturing industry, producing tires for cars, bikes, trucks, and heavy-duty vehicles. Over the past 5 years, the company’s revenue has grown at an impressive annual rate of 11.21%, surpassing the industry average of 8.67%. Its market share has also risen from 10.72% to 11.99%, showcasing steady growth compared to competitors.

Net income, a key measure of profitability, has experienced robust annual growth of 20.57% over the same period, outperforming the industry average of 18.19%.

Hero MotoCorp Ltd
The world’s largest two-wheeler maker, Hero MotoCorp, was founded in 1984 and is renowned for its motorcycles and scooters. The Debt to Equity Ratio indicates the extent to which a company finances its operations through debt versus equity. Over the past 5 years, the company’s ratio has been 3.49%, well below the industry average of 27.77%.

The Current Ratio reflects a company’s ability to meet short-term obligations. Over the last 5 years, the company’s current ratio has averaged 174.36%, higher than the industry’s 137.2%.

Asahi India Glass Ltd
Incorporated in 1984, Asahi India Glass Ltd is a prominent glass manufacturer catering to both the automotive and construction sectors. Its products include safety and architectural glass. 

Over the past 5 years, net income has grown annually by 11.52%, surpassing the industry average of 10.9%. During the same period, market share saw a modest increase from 1.34% to 1.35%.

Apollo Tyres Ltd
Since its inception in 1972, Apollo Tyres has grown into a top tyre manufacturer, catering to both domestic and international markets.Over the past 5 years, net income has grown annually at 20.43%, surpassing the industry average of 18.19%. In FY24, total revenue stood at ₹25,531.65 crore. The current ratio averaged 110.22% over 5 years, above the industry’s 108.05%.

JK Tyre & Industries Ltd
Founded in 1951, JK Tyre is a major producer of tires for cars, commercial vehicles, and off-road vehicles. The company’s geographical segments include India, Mexico, and other regions. Over the past 5 years, net income has increased at an annual rate of 34.85%, compared to the industry average of 18.19%.

Maruti Suzuki India Ltd
India’s leading passenger car manufacturer, Maruti Suzuki, established in 1981, offers a wide range of vehicles from budget-friendly to premium models. Over the past 5 years, the company’s debt to equity ratio has been 0.8%, significantly lower than the industry average of 113.54%, with a dividend yield of 1.13%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.