3 Largecap Auto Stocks To Buy In September For Upto 27% Return, Sharekhan Says

Indian stock markets traded higher today. Nifty was up to 17,665.80 points, gained by 0.72% in the intra day trading. Reputed brokerage firm Sharekhan has recommended these three auto stocks to buy for high returns.

Stocks To Buy: Sharekhan Says

Sharekhan suggests buying the stocks of Bajaj Auto, Hero MotoCorp, and Tata Motors.

According to the brokerage firm, "Automobile OEMs begin to witness improvements in dispatches, bookings, inquiries and customer footfalls, as the festive season begins in August 2022. Wholesale volumes were largely positive in August 2022, led by strong growth momentum in commercial vehicles (CV), passenger vehicles (PV), and two-wheelers (2Ws). Small and mid-size cars also saw dispatches improve during the month, driven by improving rural sentiments, and new launches."

Bajaj Auto

The current market price of Bajaj Auto is Rs. 4,041/ share, and Sharekhan has estimated a target price for the stock at Rs. 4,800/share, with a 26.84% potential return, and given buy rating. It is a large cap stock with a market capitalization of Rs. 114,492 crore. The company is offering a high dividend yield of 3.54%.

In the last 1 month its share price fell by 1.51%, in the last 6 months its share price gained by 22.49%, in 2022 its share price surged by 20.90%.

Hero MotoCorp

The current market price of Hero MotoCorp is Rs. 2,827/ share, and Sharekhan has estimated a target price for the stock at Rs. 3,210/share, with a 13.54%% potential return, and given buy rating. It is a large cap stock with a market capitalization of Rs. 8,283 crore. The company is offering a high dividend yield of 3.34%.

In the last 1 month its share price gained by 3.80%, in the last 6 months its share price gained by 29.26%, in 2022 its share price gained by 14.75%.

Tata Motors

The current market price of Tata Motors is Rs. 462/ share, and Sharekhan has estimated a target price for the stock at Rs. 516/share, with an 11.68% potential return, and given buy rating. It is a large cap stock with a market capitalization of Rs. 152,441 crore.

In the last 1 month its share price fell by 1.74%, in the last 6 months its share price gained by 16.78%, in the last 1 year its share price gained by 54.68%.

Return comparison from stocks

In this table the Current Market Price (CMP) and the Target Price (TP) of the recommended stocks have been mentioned.

Company	CMP	Target Price	1 Year Potential Return
Bajaj Auto	Rs. 4,041	Rs. 4,800	26.84%
Hero MotoCorp	Rs. 2,827	Rs. 3,210	13.54%
Tata Motors	Rs. 462	Rs. 516	11.68%

Recommendation by Sharekhan

"In the PV segment, Tata Motors continued to register strong sales. CV whole sales continued to grow strongly in August 2022, led by strong growth in high-tonnage truck sales. EVs continued to gain traction especially for Tata Motors. In the 2W space, we like Bajaj Auto and Hero MotoCorp because of positive sentiments in rural and semi-urban areas, a strong recovery in export destinations, and comfortable valuations. We like Tata Motors, led by a recovery in CV, PV, and Jaguar-Land Rover (JLR) sales, while EVs (the key focus area) are expected to contribute 20% of domestic PV sales over the next 5 years," Sharekhan mentioned.

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 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.