6 Stocks From Auto Sector Motilal Oswal Suggests To Buy

Motilal Oswal, a leading stock broking firm has intercepted 6 stocks from automobile sector whose price has potential to grow between 20% to 28.84% upside. Hence the brokerage suggests investors to buy these stocks as per the research note on auto sector.

According to Motilal Oswal, "the volume growth for March 2023 has indicated a healthy demand during the festive season followed by higher dispatches before BS6-II transition (to be implemented from Apr'23). Domestic dispatches of 2 wheelers continue to improve but broad based recovery is yet to happen. Exports of 2 wheelers improved month on month basis. Medium and heavy commercial vehicles dispatches were above estimate led by strong demand from underlying industries

and heavy pre-buying before BS6-II transition. Passenger vehicle dispatches were largely flat YoY indicating moderation in demand momentum. Despite weak agri sentiments due to erratic rainfall in key regions, tractors reported YoY growth. Overall dispatches for 2Ws, tractors and CV grew
11%,2% and 11% YoY during the month while PVs remained flat YoY. "

The brokerage feels that the commercial vehicles have a strong demand over other segments along with a stable competitive environment. Motilal Oswal prefers companies with higher visibility in terms of demand recovery, a strong competitive positioning, encouraging margin drivers, and a strong balance sheet. Based on this thesis, there are 6 stocks that brokerage feels would show good gains if invested now.

Disclaimer:

The stocks have been picked from the brokerage report of Motilal Oswal, Greynium Information Technologies and the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.