Auto Ancillary Stocks to Buy: Monarch Networth Names Minda Corporation, RK Forgings and Sundram Fasteners as Top Picks After Strong October Sales
- November 12, 2026
- Posted by: Harsh Piplani
- Category: News
Monarch Networth Buy on 8 auto component stocks. Minda Corp Rs 717.80, target Rs 985. RK Forgings Rs 776.80, target Rs 805. Sundram Fasteners Rs 1,068, target Rs 1,315.
Quick Answer
Monarch Networth Capital has a Buy rating on eight auto ancillary stocks after strong October vehicle sales, with Minda Corporation, RK Forgings and Sundram Fasteners as top picks. Its targets are Rs 985, Rs 805 and Rs 1,315, which imply about 37%, 4% and 23% from the NSE prices of 12 November 2026. Several of these shares have already rallied, with Minda Corporation at an RSI of 83.6, so the room to targets has narrowed for some names. Monarch also expects growth to moderate in the second half of FY27.
The list of auto ancillary picks in focus on Thursday, 12 November 2026, comes from a Monarch Networth Capital note that reviews October vehicle sales. The brokerage says strong festive demand and better affordability helped volumes, and that component makers with rising content per vehicle can outgrow the industry.
Minda Corporation traded at Rs 717.80 on the NSE, up 0.42%, while RK Forgings rose 1.58% to Rs 776.80 and Sundram Fasteners slipped 0.23% to Rs 1,068. This guide covers what the brokerage said, where each stock stands against its target, the key technical levels and the risks to weigh before acting.
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What Did Monarch Networth Say About Auto Ancillary Shares?
Monarch Networth Capital reviewed October 2026 auto sales and, in a note carrying a Buy rating across its picks, concluded that demand stayed healthy through the festive season. Among passenger vehicle makers, Maruti Suzuki, Tata Motors and Hyundai reported strong double-digit volume growth, while M&M grew about 1%. In commercial vehicles, Force Motors grew 45%, Volvo Eicher 35%, Tata Motors 27% and M&M 17% year on year.
The picture was weaker in tractors, where the farm equipment segment saw double-digit volume de-growth. The brokerage also expects passenger vehicle, commercial vehicle and two-wheeler growth to moderate after the festive period on a high base. That mix is why it favours auto ancillary shares with diversified revenue and new orders over those tied to a single vehicle segment.
Top Picks and Targets: How Much Upside Is Left?
Monarch named three top picks and gave each a Buy rating, and the Monarch Networth Buy rating covers all eight names. Media reports of the note quote upside of 8% to 63% across all eight auto ancillary shares, measured at the reference prices in the report. Because prices have moved since then, the table below recalculates the upside against the NSE price on 12 November 2026.
| Stock | Monarch rating and target | Upside quoted in note | Upside from 12 Nov price |
|---|---|---|---|
| Minda Corporation | Buy, Rs 985 | Up to 44% | 37.2% |
| RK Forgings | Buy, Rs 805 | Up to 16% | 3.6% |
| Sundram Fasteners | Buy, Rs 1,315 | Up to 23% | 23.1% |
| ASK Automotive (latest published target, Aug 2026) | Buy, Rs 745 | Not itemised in public summary | 14.5% |
| Pricol (latest published target, Jul 2026) | Buy, Rs 810 | Not itemised in public summary | 10.1% |
The gap between the quoted and the current upside matters. The Minda Corporation share price target of Rs 985 still leaves a sizeable gap to the market price, Sundram Fasteners sits near the quoted figure, and RK Forgings has already covered most of the distance. Elara Capital separately gives Minda Corporation a Buy and a share price target of Rs 926, which implies about 29% from here.
Why Minda Corporation, RK Forgings and Sundram Fasteners?
Among auto ancillary names, Minda Corporation is expected to grow faster through rising content per vehicle, meaning more of its parts go into each vehicle as features and electronics increase. The stock carries a PE of 30.63 against an industry PE of 36.96 and a return on equity of 15.50%.
RK Forgings is positioned to benefit from healthy new order bookings and expansion in casting. The RK Forgings share price already reflects that, with a PE of 75.85 well above the industry PE of 47.42 and its return on equity is 5.20%, so the market is already paying for the growth. Sundram Fasteners is expected to gain from export orders and diversification into non-auto products, with a PE of 35.53 and a return on equity of 13.90%.
Auto Ancillary Stocks Data: Price, PE and ROE Compared
The table covers all eight names in the Monarch list at NSE prices on 12 November 2026. A lower PE or higher return on equity does not make a stock better on its own, but the spread shows how differently the market values each business.
| Stock | NSE price | Day change | PE ratio | ROE |
|---|---|---|---|---|
| Minda Corporation | Rs 717.80 | +0.42% | 30.63 | 15.50% |
| RK Forgings (Ramkrishna Forgings) | Rs 776.80 | +1.58% | 75.85 | 5.20% |
| Sundram Fasteners | Rs 1,068.00 | -0.23% | 35.53 | 13.90% |
| ASK Automotive | Rs 650.75 | +0.38% | 37.80 | 23.14% |
| Pricol | Rs 735.65 | +2.12% | 30.36 | 20.56% |
| Fiem Industries | Rs 1,937.60 | +0.24% | 19.34 | 21.04% |
| SJS Enterprises | Rs 2,064.40 | +0.32% | 29.33 | 22.63% |
| Happy Forgings | Rs 1,869.10 | +3.29% | 48.64 | 15.38% |
Among these auto ancillary companies, Fiem Industries has the lowest PE at 19.34 and a 2.07% dividend yield, while RK Forgings is the most richly priced on earnings. ASK Automotive pairs a 23.14% return on equity with a 37.80 PE, a premium to the 36.96 industry PE. These figures come from NSE data and company filings.
Technical View of the Top Auto Ancillary Picks
Momentum is strong but stretched in the leading auto ancillary shares. Minda Corporation has a 14-day RSI of 83.6, above the 70 overbought line, and trades about 9% above its 20-day average of Rs 656.29. The SuperTrend support sits near Rs 634.13 and the day high of Rs 735.80 is the first resistance.
The RK Forgings share price has an RSI of 78.4 and trades above its 20-day average of Rs 678.68, with SuperTrend support near Rs 671.32. Sundram Fasteners is the exception, with an RSI of 55.8 and its SuperTrend still pointing down, with resistance near Rs 1,138.22. ASK Automotive has an RSI of 73.7, a 20-day average of Rs 590.71 and SuperTrend support near Rs 563.04. These are technical reference levels, not recommendations.
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Should You Buy Auto Ancillary Stocks Now?
The case for these auto ancillary shares rests on festive demand, rising content per vehicle, export orders and non-auto diversification. Monarch Networth’s Buy rating on each pick and Elara’s constructive view on Minda Corporation support the long-term story, and Sundram Fasteners still shows a double-digit gap to its target.
The case for caution is price. Several auto component stocks have run up quickly, RSI readings are well above 70 in four of the names, and the RK Forgings share price has little room left to its target. Investors who want exposure often stagger entries and keep a stop-loss near a support level such as the 20-day average, but the right choice depends on individual goals.
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Key Risks for Auto Ancillary Picks
Demand is the first risk. Monarch itself expects growth to taper in the second half of FY27, and tractor volumes are already falling by double digits. A weaker festive hangover would show up first in order books and margins.
Costs and concentration are the second risk for auto component stocks. Aluminium and steel prices affect margins, and several of these companies depend on a few large carmakers. Valuation is the third risk, since a PE of 75.85 for RK Forgings leaves little room for a miss.
Conclusion
Monarch Networth Capital’s Buy ratings put auto ancillary picks back in focus, with Minda Corporation, RK Forgings and Sundram Fasteners as top picks and targets of Rs 985, Rs 805 and Rs 1,315. Upside is meaningful for Minda Corporation and Sundram Fasteners but thin for RK Forgings after its rally. Check live prices, the next quarterly results and your own risk limits before deciding.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
Which auto ancillary stocks to buy did Monarch Networth Capital pick?
Ans. Monarch Networth Capital issued Buy ratings on eight auto ancillary shares in its post-October sales note and named Minda Corporation, RK Forgings and Sundram Fasteners as top picks. The target prices for the three are Rs 985 for Minda Corporation, Rs 805 for RK Forgings and Rs 1,315 for Sundram Fasteners. The brokerage says these companies can outgrow the underlying auto industry. These are analyst views and not guaranteed returns.
What is the Minda Corporation share price target?
Ans. The Minda Corporation share price target from Monarch Networth Capital is Rs 985 with a Buy rating, which it describes as upside of up to 44%. Against the NSE price of Rs 717.80 on 12 November 2026, that target implies about 37%. Elara Capital also rates the stock Buy with a target of Rs 926. Targets are estimates and can change with results and market conditions.
How much upside do RK Forgings and Sundram Fasteners have now?
Ans. RK Forgings has a Monarch target of Rs 805, which implies only about 3.6% from the NSE price of Rs 776.80, because the stock has already risen. Sundram Fasteners has a target of Rs 1,315, which implies about 23% from Rs 1,068. The upside figures in the note were measured at earlier prices, so readers should recalculate against the live price before acting.
Why are auto ancillary shares in focus after October sales?
Ans. October 2026 vehicle sales were strong during the festive season, with Maruti Suzuki, Tata Motors and Hyundai posting double-digit passenger vehicle volume growth and commercial vehicles growing 17% to 45% across Force Motors, Volvo Eicher, Tata Motors and M&M. Component makers earn revenue from every vehicle built, so higher output usually lifts order books. Monarch also expects growth to moderate in the second half of FY27 on a high base.
Is ASK Automotive a good auto ancillary stock to buy at Rs 650?
Ans. ASK Automotive trades at Rs 650.75 with a PE of 37.80 and a return on equity of 23.14%, and Monarch’s latest published target is Rs 745, which implies about 14.5% from here. The stock is up sharply from its Rs 441 reference price in the Q4 FY26 sector note, and its 14-day RSI of 73.7 signals a stretched short-term move. A staggered approach and a stop-loss are common risk controls, but this is not investment advice.
What are the key risks for auto ancillary stocks?
Ans. The main risks are a slowdown in vehicle demand after the festive season, weak tractor volumes, rising raw material and aluminium costs, high client concentration with a few carmakers, and rich valuations after a sharp rally. RK Forgings trades at a PE of 75.85 against an industry PE of 47.42, and Minda Corporation has a 14-day RSI of 83.6. Any miss in quarterly results can trigger a sharper fall in stretched stocks.
Should I buy these auto component stocks at current levels?
Ans. That depends on your time frame and risk appetite. The Monarch Networth Buy rating, strong festive demand and rising content per vehicle support the long-term case, while overbought RSI readings and narrowed upside in names like RK Forgings argue for caution. This article is educational and is not investment advice from Univest (SEBI RA INH000013776), so consult a SEBI-registered advisor before investing.
