NDR Auto Components Ltd. (NDRAUTO) AI Stock Analysis

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NDR Auto Components Ltd.

(NSE:NDRAUTO)

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Rating:51Neutral

Price Target:INR 654.00▼(-10.77% Downside)

Action:reiterated

Date:08/17/26

NDR Auto Components scores modestly due to a mix of strong growth but significant fundamental and technical headwinds. The primary drag is inconsistent and frequently negative free cash flow despite impressive revenue scaling, raising questions about earnings quality and capital efficiency. Flat profitability margins (6-7% net) despite a 6x revenue increase suggest limited pricing power or operating leverage in a competitive auto-parts market. Valuation at ~30x P/E is elevated given these margin and cash flow dynamics. Technical indicators show short-term bearish momentum with the stock below key short-term moving averages and negative MACD, though oversold stochastics may offer a near-term floor. The conservatively leveraged balance sheet and strong ROE improvement are positives, but they are insufficient to offset the cash flow and margin concerns at current valuations.

Positive Factors

Strong Revenue GrowthSustained revenue expansion indicates that NDR Auto Components has continued to scale its business across multiple years. Healthy FY2026 growth provides a durable demand foundation, supports operating investment, and can strengthen market position if the company maintains disciplined execution.

Negative Factors

Sharp EBIT DeclineThe sharp EBIT decline signals significant pressure on operating profitability and raises questions about margin sustainability. If costs or operating leverage remain unfavorable, revenue growth may produce less incremental earnings, weakening the quality and predictability of future financial performance.

NDR Auto Components Ltd. (NDRAUTO) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 17.60B
Dividend Yield: 0.55%
Average Volume (3M): 2,549
Price to Earnings (P/E): 25.0
Beta (1Y): 1.62
Revenue Growth: 19.99%
EPS Growth: 19.94%
Country: India
Employees: 208
Sector: General
Sector Strength: 55
Industry: Auto - Parts

NDR Auto Components Ltd. Business Overview & Revenue Model

Company Description

NDR Auto Components Limited operates across India, specializing in the manufacturing, supply, and commercialization of various automotive parts for passenger and utility vehicles. Its core product line primarily consists of seating structures, includ...

NDR Auto Components Ltd. Financial Statement Overview

Summary

NDR Auto Components has delivered exceptional revenue growth (6x+ over five years to ₹7.13B in FY2025) and improving ROE (~17.6%). However, net margins remain stubbornly flat at 6-7% despite massive scale gains, and EBITDA margins have slightly compressed. The most concerning issue is highly volatile and frequently negative free cash flow — FY2026 projects -₹339M FCF despite growing profits, indicating heavy capex and weak cash conversion. The balance sheet remains conservatively leveraged (D/E ~0.15x), which provides a buffer, but rising debt in FY2026 warrants monitoring. The combination of strong top-line growth offset by margin stagnation and poor cash flow quality yields a moderate score.

Income Statement

62Positive

Balance Sheet

68Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	8.23B	8.23B	7.13B	6.02B	3.93B	2.33B
Gross Profit	1.71B	1.60B	1.70B	1.32B	922.79M	522.56M
EBITDA	946.56M	906.56M	733.24M	562.30M	456.56M	262.83M
Net Income	620.88M	619.45M	532.58M	387.13M	281.07M	148.87M
Balance Sheet
Total Assets	5.63B	5.63B	4.86B	3.96B	3.44B	2.50B
Cash, Cash Equivalents and Short-Term Investments	232.57M	232.57M	628.68M	345.22M	524.12M	514.42M
Total Debt	617.01M	617.01M	324.14M	311.69M	337.23M	129.67M
Total Liabilities	2.05B	2.05B	1.84B	1.43B	1.26B	589.77M
Stockholders Equity	3.58B	3.58B	3.02B	2.54B	2.18B	1.91B
Cash Flow
Free Cash Flow	0	-338.59M	358.36M	-68.49M	20.36M	-286.99M
Operating Cash Flow	0	395.81M	838.23M	274.12M	481.83M	5.47M
Investing Cash Flow	0	-622.82M	-424.92M	-62.43M	-345.71M	-36.84M
Financing Cash Flow	0	-129.98M	-124.20M	-83.48M	-54.55M	1.52M

NDR Auto Components Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price732.95

Price Trends

50DMA707.43Positive

100DMA761.04Negative

200DMA753.25Negative

Market Momentum

MACD12.97Negative

RSI58.97Neutral

STOCH69.69Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NDRAUTO, the sentiment is Positive. The current price of 732.95 is above the 20-day moving average (MA) of 696.69, above the 50-day MA of 707.43, and below the 200-day MA of 753.25, indicating a neutral trend. The MACD of 12.97 indicates Negative momentum. The RSI at 58.97 is Neutral, neither overbought nor oversold. The STOCH value of 69.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:NDRAUTO.

NDR Auto Components Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:NDRAUTO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:TALBROAUTO	76Outperform	INR 25.68B	20.65	―	0.18%	8.71%	16.57%
IN:RACLGEAR	72Outperform	INR 18.45B	36.30	―	0.10%	28.21%	65.76%
IN:GNA	71Outperform	INR 25.29B	17.19	―	0.52%	23.06%	38.22%
IN:PRECAM	56Neutral	INR 10.15B	24.30	―	0.96%	-0.27%	-38.48%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:NDRAUTO	51Neutral	INR 17.75B	25.02	―	0.55%	19.99%	19.94%
IN:RICOAUTO	49Neutral	INR 13.35B	-102.64	―	0.54%	21.35%	-4.52%

* General Sector Average

Performance Comparison

IN:NDRAUTO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:NDRAUTO	NDR Auto Components Ltd.	732.95	-142.21	-16.25%
IN:GNA	GNA Axles Ltd	581.55	268.05	85.50%
IN:PRECAM	Precision Camshafts Ltd.	103.90	-86.54	-45.44%
IN:RACLGEAR	RACL Geartech Ltd	1535.95	423.55	38.08%
IN:RICOAUTO	Rico Auto Industries Limited	102.34	-7.65	-6.96%
IN:TALBROAUTO	Talbros Automotive Components Limited	407.80	123.73	43.55%

NDR Auto Components Ltd. Corporate Events

ICRA Reaffirms A+ Ratings for NDR Auto Components Amid Strong Growth

Oct 26, 2026

Credit rating agency ICRA has reaffirmed NDR Auto Components’ long-term rating at [ICRA]A+ (Stable) and short-term rating at [ICRA]A1+ on total bank facilities of Rs 100 crore, reflecting confidence in the company’s business profile and financial str...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 17, 2026

NDR Auto Components Ltd. AI Stock Analysis