The auto ancillary space is seeing a resurgence in investor interest, as the sector is expected to benefit from the tailwinds of a recovering automobile market. A number of smallcap stocks in the space are trading at attractive valuations, and offer the potential for significant upside.

One such stock is Bharat Forge (BSE: 500470). Bharat Forge is a leading supplier of forgings and machined components to the global automotive industry. The company is expected to benefit from the growth of the electric vehicle (EV) market, as EVs require more complex forgings than traditional internal combustion engine (ICE) vehicles. Bharat Forge is also well-positioned to benefit from the growth of the commercial vehicle market in India.

Another smallcap auto ancillary stock with upside potential is Minda Industries (BSE: 532509). Minda Industries is a leading supplier of automotive components, including steering systems, lighting systems, and safety systems. The company is expected to benefit from the growth of the passenger vehicle market in India, as well as the increasing demand for safety features in vehicles.

Atul Auto (BSE: 500487) is another leading supplier of automotive components with upside potential. Atul Auto is a leading supplier of brake systems and other automotive components. The company is expected to benefit from the growth of the commercial vehicle market in India, as well as the increasing demand for safety features in vehicles.

Finally, Supreme Industries (BSE: 532960) is a leading supplier of seating systems and other automotive components. The company is expected to benefit from the growth of the passenger vehicle market in India, as well as the increasing demand for comfort and convenience features in vehicles.

These are just a few of the many smallcap auto ancillary stocks that offer the potential for significant upside. Investors should do their own research before investing in any of these stocks.