7 Auto Stocks To Buy According To Sharekhan’s Automobile Report

Broking firm Sharekhan has come-up with its latest automobile report. The brokerage continues to remain positive on the auto sector and believes commercial vehicle dispatches will continue to outperform.

Here are 7 auto stocks that are a buy according to the latest automobile report of Sharekhan.

	Current market price	Target price	Likely gains %
Alicon Castalloy Limited	Rs 768	Rs 1056	37.50%
Amara Raja Batteries	Rs 767	Rs 1146	49.41%
Ramkrishna Forgings	Rs 1,145	Rs 1,204	5.15%
Sundram Fasteners	Rs 922	Rs 1,100	19.31%
Lumax Auto	Rs 140	Rs 207	47.86%
Mayur Uniquoters	Rs 466	Rs 670	43.78%
TVS Motors	Rs 562	Rs 688	22.42%

Sharekhan’s take on the auto sector

According to the above table, stocks like Amara Raja Batteries, Lumax and Mayur Uniquoters are good stocks to buy, which can give nearly 45 to 50% returns from current levels.

According to Sharekhan, the automotive monthly sales in September 2021 were broadly in line with its expectations, with commercial vehicles (CV) dispatches continuing to outperform other segments, while the passenger vehicle (PV) segment continues to impacted by chips shortage.

"Two-wheelers (2Ws) and tractor sales were muted due to high base and higher dealer inventory at the start of September month. Our channel checks suggest a strong rise in enquiries and order booking across segments and expect strong sales in the festive season going ahead, though the PV segment is expected to be subdued to supply issues. Moreover, automobile companies are launching new and upgraded models. We expect commercial vehicles (CV) sales to recover strongly, followed by tractors, 2W (2W), and passenger vehicles," the brokerage has said.

Disclaimer

The above stocks are picked from Sharekhan's latest report on the aut sector. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies Pvt Ltd, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article. The above article is for informational purposes only.