Business Details
Many websites list Hindustan Hardy Spicer under Auto Ancillary which is incorrect to say the least. This can be termed as Machine Tools Company as it creates items which have wide range of usage.
Below are major products from the Company along with usage of them in different industries.
Propeller Shafts
It creates Propeller shafts which are used in different industries like automotive, agricultural, off-highway and industrial applications.
Double Cardan Shafts
Double Cardan shafts are used in different machines types like Cement Mixers, Agricultural Tractors, Wheeled Excavators. These machines are used in different industries.
Universal Joints and Different Auto Components
Company manufactures these components which comply with international standards. These components are also supplied to leading Automobile Companies in India. Due to this business vertical it is often classified as Auto Ancillary Company.
It has some marquee names in Client list. Major clients in different industrial segments are General Motors, Swaraj Mazda and Volvo Eicher in (Automotive Sector), Tafe, International Tractors in (Agriculture segment) and Komatsu, ACE, Volvo Construction in (Construction sector).
Stock Performance
Above is long term price performance chart of the Company. If you closely observe the Company is range bound trading between 150 and 50 price ranges in last 15 years. So you can play it as cyclic business operating between two price ranges.
It is not buy and hold type of stock based on the price performance. It is at best can be bought at lower levels and sold at higher levels. It is cyclic play type of stocks.
My Opinion
Hindustan Hardy Spicer is in multiple segments. The products created by this Company is used in wide range of machines. These machines are useful in different industries. This makes it more wide spread Component creation Company compared to standard Auto Ancillary Companies.
However it is unable to grow consistently over the years. The Company products are limited to certain machine types. The sales of these machines and tie up with Companies creating them are major trigger for it.
There are better alternatives present in Auto Ancillary space and machine components space. The Auto Industry is going through disruption due to Electric Vehicles. So you need to identify companies which will not be impacted due to disruption or at best benefit from it.