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Auto Stocks To Buy: Investment Call To 4 Large Cap Stocks After Sales Update: KR Choksey
KR Choksey has recommended investors to buy 4 best stocks from auto sector after sales update. These stocks are Maruti Suzuki India Ltd, Tata Motors Ltd, Bajaj Auto Ltd, and Ashok Leyland Ltd. If you buy auto stocks now, you will get maximum 33% return. Check key takeaways below:
| Name of Company | Return Potential |
|---|---|
| Ashok Leyland Ltd | 33% |
| Tata Motors Ltd | 31% |
| Maruti Suzuki India Ltd | 27% |
| Bajaj Auto Ltd | 23% |
1. Buy Ashok Leyland Ltd
The last trading price of the stock is Rs 146 with an intraday fall of 1.75%. The company has a market capitalisation of Rs 42,876 crore. The analyst has assigned buy call to the stock with a target price of Rs 194.
If you buy Ashok Leyland now, you will get potential 33% return. The stock has given maximum 83% return in last 3-years.
According to the brokerage house, AL's AVTR range is gaining higher demand from consumers, which will aid to higher realizations and profitability. Improving realizations, reducing discounts, softening commodity costs, and cost rationalization measures will aid in margin improvement. We have assigned a P/E multiple of 26.2x on FY24E EPS of INR 7.4 to arrive at a target price of INR 194/share. We maintain our "BUY" rating on the shares of Ashok Leyland Ltd."
2. Buy Tata Motors Ltd
The last trading price of Tata Motors Ltd is Rs 435 apiece with an intraday fall of 0.68%. KR Choksey has recommended investors to buy Tata Motors at a target price of Rs 572 apiece to receive a potential return of 31%. The stock has given maximum 170% return in last 3-years.
According to KR Choksey, "TTMT's domestic PV and CV businesses continue to see strong topline growth and margin improvement backed by higher volumes and realizations. JLR performance is expected to improve with better chip availability, ramp up in production, improving mix, and Refocus cost savings. FY23E EBIT and FCF targets have been reduced by the management. While we believe performance improvement is on cards, the time taken for the same is getting elongated. We apply a multiple of 18.0x on FY24E EPS of INR 31.8 and arrive at a Target price of INR 572. We maintain our "BUY" rating on the shares of Tata Motors."
3. Buy Maruti Suzuki India Ltd
The last trading price of the stock is Rs 8815 apiece with an intraday fall of 1.58%. The company has a market capitalisation of Rs 2,66,286.59 crore. Maruti Suzuki has given maximum 23% return in last 3-years and 20% return in last 1-year.
KR Choksey has suggested investors to buy Maruti Suzuki India with a target price of Rs 11,158 to get a return of 27%.
According to the analyst, "The overall PV industry is seeing a strong uptick in volumes, and MSIL being the market leader is seeing strong YoY growth in no. of vehicles sold. MSIL is focused on new product launches, especially in the SUV segment. On margins, MSIL is expected to benefit from FX realization, lower commodity costs, and higher operating leverage due to an increase in volumes. We have assigned a P/E multiple of 28.2x on FY24E EPS of INR 395.7 to arrive at a target price of INR 11,158/ share . We maintain our "BUY" rating on the shares of Maruti Suzuki India Ltd."
4. Buy Bajaj Auto Ltd
The last trading price of the stock is Rs 3659 with an intraday dip of 1.30%. The company has a market capitalisation of Rs 1,05,885.18.
KR Choksey has recommended investors to buy Bajaj Auto Ltd with a target price of Rs 4483 apiece. If you buy the Bajaj now, you will get potential return of 23%. The stock has given maximum 16% return in last 3-years.
According to the brokerage firm "BJAUT has overcome its supply chain constraints in Q2FY23. We expect margins to see further improvement due to the commodity costs softening, FX realizations, and operating leverage. We remain positive on BJAUT due to the gradual recovery seen in domestic 2-wheelers and 3-wheelers, recovery in exports over time as the macro issues stabilize, margin tailwinds, and strong financial position. We assign a P/E multiple of 17.6x on FY24E EPS of INR 254.3 to arrive at a target price of INR 4,483/share. We maintain our "BUY" rating on the shares of Bajaj Auto."
Disclaimer
The stocks have been picked from the brokerage report of KR Choksey. Greynium Information Technologies, 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 check with certified experts before taking any investment decision.
