Autoline Industries Overview
Autoline Industries can be categorized under Auto Ancillary Sector. It went on public in year 2007. The company introduces itself as largest automotive sheet metal components manufacturer in India supplying to major OEM like, Tata Motors Volkswagen, Ford, GM, Renault-Nissan, Daimler India, Cummins USA, Ashok Leyland, AMW, FIAT, etc.
The company work can be classified into two categories.
- Design Services
- Manufacturing Services
Under Design Services this company creates prototype for the Auto Industry Clients (like Ashok Leyland) and tests it.
Under Manufacturing Services it performs Prototype manufacturing and Mass Manufacturing. Mass Manufacturing means it creates the Heavy Sheet Metal Components & Assemblies, Exhaust System, Pedal System, Door Assemblies, Load body, Door hinges & Skin panels.
So basically company either designs or creates Heavy Sheet Metal Components & Assemblies, Exhaust System, Pedal System, Door Assemblies, Load body, Door hinges & Skin panels based on Auto Company request.
Autoline Industry Share Performance
We will see the price performance of this share from the IPO days that is from year 2007. The time period of 11 years is good evaluation period and give us an idea of returns investors have made on this stock.
The above image is very discouraging. The company moved to 400 ranges soon after IPO launch but has not topped that range ever. Barring occasional spikes in year 2011 and 2013 the company has traded below 100 mark.
This does not give a rosy picture and you may get discouraged seeing this.People who have applied for it in IPO have lost money during these long years. This means Company has not performed well over the years because the Industry they cater Auto Industry has performed well during this period.
Autoline Industry My Opinion
Autoline Industries is from Auto Ancillary sector. There are many promising stocks present in this sector which have given excellent returns to investors in past 11 years. I am considering 11 year period because sine that time Autoline Industries is listed on exchanges.
The one thing going for the stock is that Big Bull Rakesh Jhunjhunwala has invested in it. Though it is not clear at what levels he has invested in this stock.
One thing which goes in favor of the stock is that the prices have not fallen (in slope after year 2014). During this period Nifty was in bull run mode so most stocks have performed well and only few have cracked down. It will be interesting to see how well the company performs in bearish time.
I would not recommend this company as there is no moat in the business. The tasks this company performs is more or less outsourcing one .But big manufactures will have in house department to perform the tasks.
Only situation where this company can perform well is cost effectiveness which they can do if they select overseas client.
Conclusion
I will not track this stock or add it to my watch list. For me there are other better options present in Auto Ancillary segment which you can track. The only reason this stock is tracked or discussed here is because Big Bull has stake on it.