Multibagger or IBC - Part 31: Will this auto ancillary from a large group rewire itself for the EV world? If yes, then a re-rating

When shareholders say no, business models change. That’s exactly what happened here. For decades, this auto ancillary company routed nearly all its sales through a related party. When investors said no, the entire structure had to be rebuilt as the company must now sell directly to OEMs. What looks like a procedural change is actually a test of adaptability in India’s shifting auto-ancillary landscape. The move could unlock better transparency and margins if executed well, or expose the company’s overdependence on its partner. Either way, it marks a turning point for a firm that has quietly powered India’s heavy-vehicle backbone for over four decades. This series on auto ancillary companies works with the assumption that, from the whole set of auto ancillary companies, some multibagger stocks will emerge. And some companies in this space risk going bankrupt.