Investors looking to gain exposure to the Australian automotive industry certainly have a lot of choice on the All Ordinaries (Index: ^AXAO) (ASX: XAO).
After combing through the industry the three automotive shares listed below caught my eye. Are they in the buy zone today?
The Automotive Solutions Group Ltd (ASX: 4WD) share price is currently 15% lower than its IPO price. I believe this drop has put the aftermarket products provider's shares in bargain territory now. Management has forecast earnings growth of 7.5% this year. Pleasingly it appears confident that this growth can be sustained for at least the medium-term due to favourable conditions in the fast-growing 4X4/SUV market.
The AP Eagers Ltd (ASX: APE) share price has fallen around 11% in the last six months. This has left its shares changing hands at 16x trailing earnings, which I believe could make the automotive retailer a bit of a bargain buy. Especially considering the strong bottom line growth it delivered in FY 2016. The company recently posted record full-year net profit after tax of $105.5m, up 21% on the prior corresponding period. Whilst I expect earnings growth will slow in FY 2017, management continues to be on the lookout for earnings accretive acquisitions to boost its bottom line.
The MotorCycle Holdings Ltd (ASX: MTO) share price has rocketed 47% in the last 12 months. The catalyst for this was an exceptionally strong half-year result which revealed an 18% increase in motorcycle sales and a 27% jump in profits. With the company's dealership network the largest in the country and trading conditions in the industry the strongest for a decade, I expect to see the company continue its strong performance in the second-half of the fiscal year. This could make it a great option for investors in my opinion.
