NDR Auto Components, a key player in the Auto Ancillary industry, currently holds a Mojo Score of 57.0 with a market capitalisation grade of 3. The recent adjustment in its score grade was triggered on 19 Nov 2025, reflecting a shift from its previous evaluation. The stock’s price movement on the trigger date showed a decline of 2.25%, closing at ₹859.65, down from the previous close of ₹879.40. The stock’s 52-week trading range spans from ₹550.00 to ₹1,218.70, indicating significant volatility over the past year.
Examining the technical parameters, the company’s trend has shifted from a sideways movement to a mildly bullish stance. Weekly and monthly technical indicators present a mixed picture: the MACD is mildly bearish on a weekly basis but bullish monthly, while the RSI shows no clear signal in either timeframe. Bollinger Bands suggest bearish tendencies weekly but mildly bullish conditions monthly. Daily moving averages lean mildly bullish, whereas the KST and Dow Theory indicators remain mildly bearish across weekly and monthly periods. The On-Balance Volume (OBV) indicator is mildly bullish weekly but mildly bearish monthly, reflecting some divergence in volume trends.
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From a financial trend perspective, NDR Auto Components has demonstrated consistent performance. The company reported positive results for the second quarter of fiscal year 2025-26, continuing a streak of 18 consecutive quarters with favourable outcomes. Net sales have expanded at an annual rate of 64.37%, while operating profit has grown at 71.15% annually, underscoring robust operational efficiency. The operating cash flow for the year reached a peak of ₹83.82 crores, and the dividend payout ratio stands at 12.28%, reflecting a balanced approach to shareholder returns.
Profit after tax (PAT) for the latest six-month period is ₹28.45 crores, with a growth rate of 21.22%. These figures highlight the company’s ability to generate consistent earnings growth. Over the past three years, the stock has delivered cumulative returns of 456.23%, significantly outperforming the Sensex’s 37.31% return over the same period. The one-year return of 34.33% also surpasses the BSE500 benchmark, which recorded a 9.48% gain, indicating strong relative performance within the broader market.
Despite these positive financial trends, the valuation metrics present a contrasting view. The company’s return on capital employed (ROCE) stands at 17.1%, while the enterprise value to capital employed ratio is 5.7, suggesting a valuation that is on the expensive side relative to its capital base. The stock trades at a premium compared to its peers’ historical averages, which may reflect market expectations of sustained growth. The price-to-earnings-to-growth (PEG) ratio is approximately 1.1, indicating that the market’s valuation is closely aligned with the company’s earnings growth rate.
In terms of quality, NDR Auto Components maintains a low average debt-to-equity ratio of 0.04 times, signalling a conservative capital structure with minimal leverage. This financial prudence supports the company’s ability to navigate market fluctuations and invest in growth opportunities. However, domestic mutual funds currently hold no stake in the company, which may suggest a cautious stance from institutional investors, possibly due to valuation concerns or limited research coverage given the company’s size.
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Technically, the stock’s recent mild bullish trend is supported by daily moving averages and monthly MACD signals, which may indicate potential for upward momentum in the near term. However, the presence of bearish signals in weekly MACD, Bollinger Bands, KST, and Dow Theory suggests caution, as short-term volatility could persist. The divergence between weekly and monthly indicators highlights the importance of monitoring these trends closely for any sustained directional movement.
Looking at the stock’s price performance relative to the Sensex, NDR Auto Components has outpaced the benchmark significantly over multiple time horizons. The five-year return of 2022.59% dwarfs the Sensex’s 91.65%, while the three-year return of 456.23% far exceeds the Sensex’s 37.31%. Year-to-date, the stock has gained 22.28%, compared to the Sensex’s 8.36%. These figures underscore the company’s strong growth trajectory and market resilience over the medium to long term.
Nevertheless, the recent downward movement in the stock price, with a one-week return of -5.81% against the Sensex’s positive 0.96%, and a one-month return of -10.41% versus the Sensex’s 0.86%, indicates short-term pressure. This may be influenced by broader market dynamics or sector-specific factors impacting investor sentiment.
In summary, the adjustment in evaluation for NDR Auto Components reflects a complex interplay of technical signals, solid financial performance, premium valuation, and quality metrics. Investors analysing this stock should weigh the company’s consistent earnings growth and strong relative returns against its elevated valuation and mixed technical indicators. The absence of domestic mutual fund participation also adds a layer of consideration regarding institutional confidence.
As the company continues to navigate the evolving market landscape, monitoring its quarterly financial disclosures and technical trend developments will be crucial for informed investment decisions.
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