Edelweiss unveils thematic research report

Unveiled at the Edelweiss Auto Ancillary conference, the report covers over 30 top auto component manufacturers from across the country. 

 

At the conference the discussions between the investors and corporate, veered around how India is touted to be the next auto ancillary hub globally by 2020. 

 

The result of a sustained interaction spanning over 20 plus auto component suppliers and 50 plus dealers combined with in-house research and analysis of global auto component suppliers, the report presents a compelling case for debunking the myth 'Auto component suppliers do not have bargaining power'.

 

Speaking on the unveiling of the report, Harish Sharma, Head Broking Business, Edelweiss said, “Of the sectors we are bullish on, the Indian auto components sector highlights a promising future, with the profitability of companies having improved steadily over the last decade. International Revenues of some of these companies now contribute over 50% of sales when compared with a mere 10% in 2002. ‘Indian auto component companies are now truly global’.  Our aim has always been to provide value based intrinsic research backed advice to our clients and this is part of a strong line-up of specific sector research that are to follow in the near future.”

 

Vinay Khattar, Associate Director & Head of Retail Research, Edelweiss said, “We believe the timing of our report - ‘Auto Components: The Future – Mega Trends Mega Factors’ is perfect. The Indian auto component industry is going through a huge trend shift. Pegged at USD38 bn and estimated to post 17% CAGR to ~USD115bn by FY21E (ACMA), the auto component exports currently contribute around 17% (~USD7bn) to the overall industry."

 

"Spurred by the availability of skilled manpower and technological competence, most Indian players are now graduating from being component suppliers to system or module suppliers, they are also in turn, gaining significant muscle, portending humungous opportunity for Indian auto component suppliers. At Edelweiss, we truly believe the ‘India Auto Component Story’ to be a magnificent opportunity for investors,” Khattar said.