Auto sector has been performing well in the last few sessions based on sales numbers that were announced recently.
Better demand across segments and steady bookings have helped lift investor mood around auto stocks, with experts now pointing to a few names that stand out.
Sharing his views on the sector, Dharmesh Kant, Head of Research at Chola Securities, said one of his top picks from the four-wheeler space is Maruti Suzuki.
He said the company has a strong hold in both the entry-level and mid-segment car markets. According to him, Maruti has been placing its models well and is gaining market share steadily when compared to players like Hyundai and Toyota.
On the two-wheeler side, Kant said companies like Bajaj Auto and TVS Motor have done well and are currently priced fairly. However, he also warned that at current levels, even a small miss in numbers could lead to a sharp correction in some stocks.
Kant added that Eicher Motors continues to perform well. Dealer checks and booking trends suggest the next two months could remain strong for the company, making it an attractive option in the two-wheeler space.
He also spoke about Tata Motors passenger vehicle business. While recent numbers were weak due to a ransomware attack and plant shutdowns, Kant believes this could be a good buying opportunity.
He said the EV range is doing well and JLR sales may improve in overseas markets such as the US, China and the UK, where interest rates have been cut.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
