Majestic Auto Ltd Stock Research

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Majestic Auto Ltd Detail

Majestic Auto Ltd is in portfolio of Anil Kumar Goel , and in portfolio of Vanaja Sunder Iyer . He is one of the top investors in India. The company belongs to Auto Ancillary sector.

As per the Company website it makes different range of products for Auto Companies. Below are list of products from the Company

  • Sheet metal Components – It creates Mufflers for Hero MotoCorp Company. It creates powder coated muffler and Chromeplated Muffler.
  • Fine blanking components – Components created are Seat recliners used in Cars, Gear sector, Back plate, Rim, Tongue stamping for Seats and Valve plates for Compressors.
  • Electric motors – Components created under this are Stator, Stator assembly, Rotter assembly compressor and Wash motor.

I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

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Majestic Auto Ltd Stock Performance

The stock was trading at level of 34 in year 2002. It has given 4 times return in past 16 years or so. The stock journey is roller coaster one. After every jump it has corrected considerably thus hampering the momentum and in turn lessening the return investors are getting.

The Company has changed its business over the years that fact is also demonstrated in above price chart. The Company makes a strong buy case below 50 price mark.

Majestic Auto Ltd My Opinion

Majestic Auto Ltd is a Auto Parts Company. It is part of Hero Group of Companies. You may be aware of Hero two wheeler. It is huge brand in India and has considerable market share in two wheeler space. Hero Motocorp is listed entity on stock exchanges and have performed over the years.

The Company products cater needs of Hero Motocorp as well. So it has in house demand for some products. Associating with huge brand like Hero does add value and helps it gain clients for some other products as well.

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Auto Ancillary is growth sector and I am bullish on it. The penetration of Auto (two wheeler and four wheeler) is still very low. Country will see consistent demand for vehicles in near future.

I have Auto Ancillary stocks in my portfolio. I am not planning to add new stocks from this sector in my portfolio. I will not be tracking this stock because of above reasons.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.


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