Auto anciallry stocks that supply parts to Porsche, McLaren and Ducati

Synopsis: This article highlights select Indian auto ancillary companies that quietly power global automotive icons such as Porsche, McLaren, and Ducati, examining their business profiles, financial strength, and deep integration into premium global OEM supply chains.

Behind some of the world’s most iconic automotive brands sits a lesser-known but highly critical layer of Indian engineering companies. From supercars and premium motorcycles to mass-market vehicles, these companies have quietly embedded themselves into global supply chains, partnering with marquee clients across Europe, the US, and Asia. Below is a closer look at select listed auto ancillary players that count names like Porsche, McLaren, Ducati, and other global giants among their customers.

Pricol Limited

Pricol Limited is one of India’s leading automotive technology and precision engineering companies, headquartered in Coimbatore. Founded in 1975, the company has built a strong global reputation by consistently focusing on innovation, product quality, and customer-centric solutions. Its operations are spread across three key verticals-Driver Information and Connected Vehicle Solutions, Actuation, Control and Fluid Management Systems, and Precision Products. 

With a portfolio of over 5,200 product variants, including subsidiaries, Pricol caters to two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, and off-highway vehicles across domestic and international markets. The company operates 14 manufacturing plants across India, one unit in Indonesia, and maintains international offices in Dubai, Tokyo, and Singapore. The stock is currently trading at a current market price of Rs. 670.50 with a market capitalisation of Rs. 8,172.15 crore.

From a financial standpoint, Pricol is trading at a price-to-earnings multiple of 40.3, which is higher than the industry average of 31.3, indicating that the stock appears slightly overvalued compared to peers. The balance sheet remains comfortable with a debt-to-equity ratio of 0.15.

Over the past three years, the company has delivered strong compounded profit growth of 46 percent and compounded sales growth of 20 percent. Operating performance remains healthy, with an operating profit margin of 12 percent in FY25. Inventory days stood at 71, while working capital days were well managed at 16. For FY25, Pricol reported sales of Rs. 2,692 crore and a net profit of Rs. 167 crore.

The company’s client base includes a wide range of leading global and domestic OEMs such as BMW, Bajaj Auto, Ducati, Harley-Davidson, Honda, Hero MotoCorp, Kawasaki, KTM, Moto Guzzi, Piaggio, Royal Enfield, Suzuki, Triumph, TVS Motor, Yamaha, Hyundai, Kia, Mahindra, Maruti Suzuki, Mitsubishi, Skoda, and Toyota.

Rico Auto Industries Limited

Rico Auto Industries is a global engineering company specialising in high-precision fully machined aluminium and ferrous components and assemblies for automotive OEMs worldwide. The company offers integrated services spanning design, development, tooling, casting, machining, and assembly across both aluminium and ferrous products.

Rico manufactures a wide range of components at scale, including clutch assemblies, automatic transmission bracket assemblies, differential case housings, wheel hub assemblies, brake panel assemblies, brake discs, and drums, among several other products across multiple segments. The stock is currently trading at a current market price of Rs. 137.60 with a market capitalisation of Rs. 1,861.52 crore.

Financially, Rico Auto is trading at a price-to-earnings ratio of 41.2, which is above the industry average of 31.3, suggesting the stock is slightly overvalued relative to peers. The company carries a higher leverage profile with a debt-to-equity ratio of 0.92. Over the past three years, compounded profit growth has declined by 3 percent, while compounded sales growth has remained modest at 6 percent. Operating margins stood at 9 percent in FY25.

Inventory days were relatively elevated at 84, while working capital days were negative at minus 21, reflecting tight working capital management. For FY25, the company reported sales of Rs. 2,212 crore and a net profit of Rs. 21 crore.

Rico Auto supplies to several major OEMs across segments. In two-wheelers, its customers include Hero MotoCorp, Honda, and Bajaj Auto. In passenger vehicles, it supplies Volvo, Jaguar, Land Rover, BMW, Honda, Tata Motors, Nissan, Ford, and Maruti Suzuki. In commercial vehicles and industrial engines, its clients include Caterpillar, Cummins, Detroit Diesel, Komatsu, and Perkins.

Talbros Automotive Components Limited

Talbros Automotive Components Limited is the flagship company of the Talbros Group and was established in 1956, initially focusing on automotive and industrial gaskets through a collaboration with Coopers Payen of the UK. Over the decades, Talbros has expanded into a diversified auto component manufacturer with a strong presence across gaskets, chassis components, rubber products, and forgings. The group also operates a Mercedes-Benz passenger car dealership. 

Talbros, along with its joint venture alliances, operates 11 manufacturing facilities across Haryana, Uttarakhand, and Maharashtra, supported by a materials division in Gurgaon and an R&D and technology centre in Faridabad. The company also benefits from technical collaborations with Nippon Leakless Corporation and Sanwa Packaging of Japan. The stock is currently trading at a current market price of Rs. 275.20 with a market capitalisation of Rs. 1,698.76 crore.

On the financial front, Talbros is trading at a price-to-earnings multiple of 17.9, which is significantly lower than the industry average of 31.3, indicating that the stock appears undervalued relative to peers.

The company maintains a conservative balance sheet with a debt-to-equity ratio of 0.13. Over the last three years, Talbros has delivered compounded profit growth of 28 percent and compounded sales growth of 13 percent. Operating profitability remains strong, with an operating margin of 16 percent in FY25. Inventory days stood at 107, while working capital days were at 57. For FY25, the company reported sales of Rs. 827 crore and a net profit of Rs. 94 crore.

The company’s customer base includes several marquee names such as Bajaj Auto, Tata Cummins, BMW, JCB, GKN, Volvo Eicher India, Ashok Leyland, Escorts Group, Force Motors, Hero MotoCorp, Honda, Hyundai, John Deere, Jaguar Land Rover, Mahindra & Mahindra, Maruti Suzuki, Suzuki, TAFE, Daimler India, Volvo, Tata Motors, Simpsons, Carraro, Dana, Musashi, Spicer, GE, and QH Talbros, along with a strong aftermarket distribution network.

Endurance Technologies Limited

Endurance Technologies is one of India’s leading automotive component manufacturers with a diversified, technology-driven product portfolio and operations spread across India and Europe, including Italy and Germany.

In India, the company primarily serves two- and three-wheeler OEMs with products such as aluminium castings, suspensions, transmissions, braking systems, and battery management systems. Its European operations focus on aluminium castings for four-wheeler OEMs and also cater to the two-wheeler aftermarket. 

Endurance operates 34 plants globally, including 20 in India, five in Germany, and nine in Italy, supported by in-house tooling facilities, a 29-acre proving ground, DSIR-approved R&D centres in India, and technical centres in Italy. The stock is currently trading at a current market price of Rs. 2,569.75 with a market capitalization of Rs. 36,146.84 crore.

From a valuation perspective, Endurance is trading at a price-to-earnings ratio of 41.7, which is higher than the industry average of 31.3, indicating that the stock is priced at a premium.

The balance sheet remains healthy with a debt-to-equity ratio of 0.20. Over the past three years, the company has posted compounded profit growth of 19 percent and compounded sales growth of 15 percent. Operating margins stood at 13 percent in FY25. Inventory days were efficient at 52, while working capital days were tightly managed at 3. For FY25, Endurance reported sales of Rs. 11,561 crore and a net profit of Rs. 836 crore.

The company supplies to major OEMs including Bajaj Auto, Royal Enfield, India Yamaha Motor, Honda Motorcycle and Scooter India, TVS Motor Company, Suzuki Motorcycle India, and Hero MotoCorp. Its overseas business also maintains strong relationships with global OEMs such as Stellantis NV, Volkswagen AG, and Mercedes-Benz Group AG.

Precision Camshafts Limited

Precision Camshafts Limited was incorporated in 1992 by Yatin S. Shah and later transitioned into a public limited company. The company is among the world’s leading manufacturers and suppliers of camshafts, a critical engine component in passenger vehicles. 

Precision Camshafts offers over 150 camshaft variants and operates four manufacturing plants in India, located in Solapur and Nashik, along with one plant each in Germany and the Netherlands. The company has a camshaft casting capacity of 11 million units per annum and a machined camshaft capacity of 4 million units per annum. The stock is currently trading at a current market price of Rs. 174.70 with a market capitalisation of Rs. 1,659.40 crore.

Financially, Precision Camshafts is trading at a price-to-earnings multiple of 47.6, which is significantly higher than the industry average of 31.3, indicating that the stock appears overvalued. The company maintains a low-leverage balance sheet with a debt-to-equity ratio of 0.08.

Over the last three years, compounded profit growth has been modest at 6 percent, while compounded sales growth has declined by 1 percent. Operating margins stood at 9 percent in FY25. Inventory days were elevated at 139, while working capital days were at 17. For FY25, the company reported sales of Rs. 865 crore and a net profit of Rs. 54 crore.

The company’s clientele includes several global automotive majors such as Porsche, Hyundai, Kia, Mercedes-Benz, BMW, Royal Enfield, Escorts, Tata Motors, Fiat, Toyota, Maruti Suzuki, Ford, and Mahindra & Mahindra.

Varroc Engineering Limited

Varroc Engineering Limited is a global tier-1 automotive component manufacturer incorporated in 1988, offering a broad portfolio that spans e-mobility solutions, body systems, lighting systems, human-machine interface solutions, ICE powertrain components, and advanced electronics. The company serves multiple vehicle segments including two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, and off-highway vehicles.

Varroc operates 37 manufacturing facilities globally, supported by seven R&D centres and a workforce of over 6,100 employees, including more than 750 R&D engineers. The stock is currently trading at a current market price of Rs. 605.10 with a market capitalisation of Rs. 9,245.11 crore. On valuation, Varroc is trading at a price-to-earnings ratio of 46.8, which is well above the industry average of 31.3, indicating that the stock appears overvalued.

The company’s debt-to-equity ratio stands at 0.54. Over the past three years, Varroc has delivered compounded profit growth of 28 percent and compounded sales growth of 12 percent. Operating margins were at 10 percent in FY25. Inventory days stood at 51, while working capital days were negative at minus 35. For FY25, the company reported sales of Rs. 8,154 crore and a net profit of Rs. 70 crore.

The company supplies to a wide range of global OEMs including McLaren, Lucid, Ford, Aprilia, KTM, TVS Motor, Yamaha, Moto Guzzi, Ducati, Kawasaki, Volvo, Toyota, Volkswagen, Morris Garages, Skoda, Triumph, Piaggio, Nissan, and Renault.

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