3 Stocks To Buy From The Auto Space Where PL Is Bullish

Broking firm, Prabhudas Lilladher (PL) has recommended buying three auto stocks, in its latest report. Among these stocks are Ashok Leyland, Mahindra and Mahindra and Eicher Motors.

Passenger vehicle segment seeing healthy growth

According to Prabhudas Lilladher the Passenger vehicle (PV) segment OEMs continue to service their healthy order book, although electronic component supplies are still not back to normal levels - which is affecting production for some OEMs. Two-wheeler (2W) segment remains under pressure, especially entry-level, due to consumer affordability issue; whereas demand for premium bikes remain stable. Commercial vehicle (CV) segment continues to witness stable growth post-festive as fleet utilization levels are healthy led by increased economic and infrastructural activities.

Buy the stock of Ashok Leyland for a price target of Rs 200

One of the three stocks where Prabhudas Lilladher is bullish is the stock of Ashok Leyland. The firm has set a price target of Rs 200 on the stock of Ashok Leyland as against the current market price of Rs 147.10. "Recovery in commercial vehicles to continue going ahead led by economic recovery benefitting demand from segments like Infra, Mining and E-com. Apart from this according to the brokerage Ashok Leyland de-risking MHCV through- New launches in LCV to gain market share and Increased focus on spares and exports business.

"Furthermore, with launch of CNG models we expect Ashok Leyland to regain part of its market share," Prabhudas Lilladher has said.

Mahindra and Mahindra stock

Another stock from the auto space that Prabhudas Lilladher has recommended is the stock of Mahindra and Mahindra. "We prefer Mahindra and Mahindra in the passenger vehicle space given healthy turnaround with back-to-back successful launches in highly competitive SUV space, proactiveness to leverage EV trend for value unlocking, strong leadership position in tractor industry and well-played out capital allocation strategy. The stock of Mahindra and Mahindra was last trading at Rs 1246.80.

Buy Eicher Motors

Last of the stocks that we are highlighting as a "buy" from the Prabhudas Lilladher report is the stock of Eicher Motors. "We remain positive on Eicher Motors owing to volume growth from new product launches, rising export volumes from channel expansion and margin expansion led by improved operating leverage, better realization from export markets and significant reduction in raw material costs," the brokerage has said.