3 Best Auto Stocks To Buy, Upto 39% Aggressive Return Estimated: Sharekhan Suggests

Nifty 50 is marginally up today, stood at 15,945.60 points till 12.45 pm. However, some risks are there as the index fell by 1.24% in the last 5 days. In this situation, renowned brokerage firm Sharekhan has given buy ratings to these 3 mid-cap auto stocks.

Stocks To Buy: Current market price and Target price

The current market price of Amara Raja Batteries stood at Rs. 466/ share, and Sharekhan has estimated a target price for the stock at Rs. 629/share. In the past one year the company's stock price has fallen by 36.39%, in the past 6 month the stock price has fallen by 29.10%. Its market capitalization is Rs. 7,966 crore.

The current market price of Mahindra CIE Automotive stood at Rs. 235/ share, and Sharekhan has estimated a target price for the stock at Rs. 300/share. In the past one year the company's stock price has fallen by 0.21%, in the past 6 month the stock price has gained by 5.59%. Its market capitalization is Rs. 8,985 crore.

The current market price of Sundram Fasteners stood at Rs. 746/ share, and Sharekhan has estimated a target price for the stock at Rs. 1,030/share. In the past one year the company's stock price has gained by 0.99%, in the past 6 month the stock price has fallen by 13.35%. Its market capitalization is Rs. 16,529 crore.

Stock	Current market price	Target price	1 Yr Potential Return
Amara Raja Batteries	Rs. 466	Rs. 629	34.97%
Mahindra CIE Automotive	Rs. 235	Rs. 300	39.87%
Sundram Fasteners	Rs. 746	Rs. 1,030	38.06%

Stocks To Buy: Opinion By Sharekhan

Commenting on the stocks, Sharekhan said, "We expect a sequential improvement in M&HCV sales to continue, driven by an expected rise in e-commerce, agriculture, infrastructure, and mining activities. Auto ancillary companies, which have substantial exposure to PV segments and premium 2W segments, are expected to improve sequentially, as the chips shortage issue has eased on a sequential basis. Though the risks of chips shortage remain a challenge, the domestic and global OEMs expect supply constraints to ease progressively. We expect our coverage of automobile companies to grow in Q1FY2023 with 30.4% y-o-y revenue growth due to a low base in Q1FY2022, impacted adversely due to Covid-induced supply constraints in the previous year."

Disclaimer

The above stocks were picked from the brokerage report of Sharekhan. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.