Multibagger or IBC - Part 15: Strong margins & no loans. Is this the auto sector’s dark horse?

Auto ancillary firms are navigating a complex chakravyuh. While some are doubling down on ICE platforms, others are sprinting toward EVs. Here is one company with a 40-year legacy that is trying to do both. It remains a market leader in ignition systems, yet also runs an EV tech center. Its deep reliance on a few OEMs continues. A silent subsidiary abroad was finally shut down, showing how closely ancillaries’ fates are tied to OEM moves. And a global JV partner exited after nearly four decades, not due to weakness, but due to shifting EV strategies abroad. With 11%+ EBITDA margins, stable cash flows, and no debt, this company sits at a curious crossroad in the EV transformation.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.