Evaluating Auto Stocks Ahead of Budget: Maruti Suzuki, Mahindra & Mahindra, and More

Investors eyeing auto stocks like Maruti Suzuki and Mahindra & Mahindra ahead of the budget should consider recent market movements and expert recommendations. Maruti Suzuki has surged to a fresh 52-week high, prompting analysts at Prabhudas Lilladher to maintain a “Buy” rating with a target price of Rs 14,432. Meanwhile, Mahindra & Mahindra faces challenges, but maintains investor interest with a “Buy” rating and a target price of Rs 3,250 from the same brokerage. On the other hand, TVS Motors, while showing recent gains, has been downgraded to a “Hold” by Prabhudas Lilladher, reflecting mixed sentiments in the sector.

Looking broader, Emkay Global favors two-wheelers and consumer vehicles over passenger vehicles (PVs), citing better growth visibility. This preference is underscored by their optimism on Hero MotoCorp due to replacement-led growth and Tata Motors for positive triggers in its Jaguar Land Rover (JLR) business. In contrast, Eicher Motors has seen a “Sell” recommendation, cautioning investors on its prospects. Ancillaries like JK Tyre and Samvardhana Motherson International are highlighted for their resilience amidst industry challenges, making them potential picks for diversified portfolios.

In conclusion, while Maruti Suzuki and select auto stocks continue to attract bullish sentiments, caution is advised in evaluating stocks like Eicher Motors and Ashok Leyland, which face specific challenges. The upcoming budget could further influence these dynamics, making it crucial for investors to stay updated with market insights and expert analyses to navigate the evolving landscape of the auto sector.

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