Multibagger auto ancillary stock tumbles 9%; is it time for investors to book profits?

Shares of Banco Products (India) Ltd tumbled 9.11 per cent on Tuesday to settle at Rs 795.60. Despite the pullback, the smallcap auto ancillary stock has delivered multibagger returns, surging 147.85 per cent over the past six months.

Bourses BSE and NSE have placed Banco Products under the short-term ASM (Additional Surveillance Measure) framework to caution investors about elevated volatility in its share price.

On the technical front, a few analysts turned cautious following the recent sharp run-up.

Sebi-registered analyst AR Ramachandran said, "Banco Products' stock is bearish on daily charts with strong resistance at Rs 875. A daily close below the support of Rs 793 could trigger a drop towards Rs 700 in the near term."

Drumil Vithlani, Technical Analyst at Bonanza, added, "The stock has seen a strong uptrend recently but is now in an overbought zone, suggesting a possible pullback or consolidation. With resistance around Rs 875 and the current price near Rs 803, there could be short-term downside risk. Profit booking is advisable for traders, while re-entry may be considered near Rs 780."

Founded in 1961, Banco Products (India) Ltd is a manufacturer of engine cooling and sealing systems for automotive and industrial applications. As of June 2025, promoters held a 67.88 per cent stake in the company.