TORONTO (Reuters) - Canada's top auto parts makers are likely to take more market share and new sales from their smaller rivals as the sector consolidates in the wake of the upheaval that drove General Motors Corp. (GM) and Chrysler into bankruptcy.

The size and scale of the big listed players, and the growing desire of automakers to assure stable supplies, mean their shares may still offer good value even after their recent rally, analysts say.

Magna International, Martinrea and Linamar Corp. were all hit hard as the crisis in the global auto industry deepened earlier this year, with their share prices hitting 2009 lows in March.

But the big Canadian companies have escaped the fate of some of their US counterparts, such as Lear Corp. and Visteon Corp., which were forced to file for bankruptcy.

"The Canadian companies have had good balance sheets and that's enabled them to do well," said David Tyerman, an analyst at Genuity Capital Markets.

Since March, Magna's stock has nearly doubled in price, Martinrea's has more than tripled, and Linamar's is more than five times higher. Analysts say there is still room for gains.

That is because the small "mom and pop shops" that represent the majority of Canadian suppliers have borne the brunt of the pain while the bigger, listed companies have been able to focus on increasing their market share.

"You have about 300 or 400 suppliers and I think half of them are going to go either bust or be acquired by somebody, and we're seeing this happening," said Youssef Abboud, an analyst at Clarus Securities.

As those companies fail, the healthy suppliers are sitting in the wings, waiting to snap up contracts and assets at fire-sale prices.

The big Canadian parts companies have been busy making strategic acquisitions and that's not likely to change any time soon.

Magna, which is leading a consortium to buy GM's Opel unit, was given the go-ahead in May to scoop up the Czech-based operations of Cadence Innovation LLC, a bankrupt US-based rival. It also bought a plant in Alabama from a Japanese supplier.

Martinrea, which recently closed a C$55.8 million ($48.1 million) private placement to help shore up its balance sheet, bought C$3 million in assets in April from SKD Co, a bankrupt Canadian parts supplier. It previously bought an SKD plant in Mexico and another in Michigan for $10 million. Revenue from those plants was about $100 million last year.

Linamar, at the same time, was making arrangements with Ford Motor Co. to buy one of its plants in Mexico.

The bankruptcies and temporary plant shutdowns at GM and Chrysler have speeded up consolidation in the industry. Production cuts at those two big customers meant lower receivables and the liquidity they bring with them.

"The smaller companies are especially vulnerable to demand-side shocks from GM and Chrysler," said Sabrina Browarski, an economist at the Conference Board of Canada.

"The larger firms are better able to absorb shocks because they have more diversified contracts."

Ms Browarski has forecast employment in the Canadian parts sector to fall 37 percent in 2009 to about 62,200.

As companies go out of business, voids open up that the bigger parts companies have rushed to fill.