In the past year, investors have received gains of 73% and 24% from Eicher Motors and TVS Motor Company, respectively, while shares of Hero MotoCorp have fallen 3%. Have these auto stocks been added to your portfolio?
Look at the assessments made on Eicher Motors, TVS Motor, and Hero MotoCorp by brokerages:
Shares of Eicher Motors: According to brokerage firm Motilal Oswal Financial Services, the management of Eicher Motors sees stable demand in the domestic market and anticipates that the ramp-up of Hunter in tier-3 and smaller cities would lead to the company’s next phase of growth.
The brokerage rates the company as a “Buy” with a 3,625 target price from the present market levels.
“While EIM is witnessing a seasonal decline in export markets, it expects growth to be driven by the ramp-up in the portfolio and its reach in international markets. EIM will continue to launch new products to address demand in international markets and to give upgrade options to RE owners in India,” the note stated.Although the focus remains on profit growth over profitability, the brokerage believes there are levers for margin improvement in the near term.
Hero MotoCorp shares: Kotak Institutional Equities has given a ‘Reduce’ rating while pegging the counter at a fair value of ₹2,600 over the next 12 months.
Himanshu Gupta, VP-Research at Globe Capital Markets, suggested to avoid Hero MotoCorp shares.
Ganesh Dongre, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, stated, “At the current levels, traders can wait for some more time for a fresh breakout in this stock. We advise them to wait and watch for this stock for the time being.”
TVS Motor shares: Jefferies is bullish on TVS Motor Company as the brokerage belives that the two- and three-wheeler maker is well-placed to benefit from an industry-wide recovery in the two-wheeler segment.
Jefferies has a ‘buy’ rating on TVS with a target price of ₹1550 apiece.
Meanwhile, Kotak has given a ‘Sell’ call for TVS and pegged it at ₹830 over a one-year period.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.