Business Overview
Gajra Bevel Gears is an Auto Ancillary Company. The manufacturing location is situated in Dewas near Indore. Below are the products from the Company
- Crown Wheel Pinions
- Spider Kit Assembly
- Spider
- Bevel Gears
- Bevel Pinions
- Transmission Gears
- Cutting Tools
As per the Company website different Original Equipment Manufacturers (OEM) are clients of the Company. Companies which are client to it are Bharat Earth movers limited, Escorts, Voltas Limited, Swaraj Mazda limited and Indo farm Tractors and Motors limited.
The Company exports products to other countries as well.
Stock Performance
Above is long term price performance chart of the Company. The long term price performance chart shows a sorry state of Stock. It has not given return to investors. The initial time period from 2002 to 2006 was good for investors.
Since then it has not performed on exchanges and price is depreciating with time. As of this writing it has become Penny stock and is trading well below 1 INR.
My Opinion
Auto Ancillary is a vast sector. This sector creates component used in Auto Industry be it Two wheeler or Three wheeler or Four wheeler or any other heavy vehicles. The vast number of Components are created for these industries.
There are many Companies which create one or other specific products. This Company creates Gears. There are more than one gear companies in market. So Auto Ancillary is a competitive space.
As of now Auto Industry is going through transitional phase. There is shift from Diesel and Petrol Cars to Electric Vehicles. This shift will impact Auto Ancillary Companies hard. Companies creating products for Electric Vehicles will gain traction whereas Components only used in Diesel and Petrol Cars will be negatively impacted.
Looking at past performance of the Company and its product category I would not advise to invest in it.