Motilal Oswal Suggests Top Stocks From Auto Sector, Buy For Higher Return

Motilal Oswal has initiated coverage on Auto Sector and recommended investors to buy 5 stocks for higher return. These stocks are Hero MotoCorp, Eicher Motors, Maruti Suzuki India Ltd, Ashok Leyland, and Tata Motors.

According to Motilal Oswal, "We prefer 4Ws over 2Ws, on the back of strong demand, along with a stable competitive environment. We expect the CV cycle to maintain its momentum. We prefer companies with: a) higher visibility in terms of demand recovery, b) a strong competitive positioning, c) encouraging margin drivers, and d) a strong balance sheet. AL and MSIL are our top picks among OEMs (original equipment manufacturer)."

1. Buy Hero MotoCorp

Motilal Oswal is upbeat on Hero MotoCorp and assigned buy call with a target price of Rs 3100 apiece. Last trading price of Hero MotoCorp is Rs 2460.70 apiece. If you buy Hero MotoCorp at last trading price, you can potentially get return of 26%.

The stock's 52-week high is Rs 2939.35 apiece and 52-week low is Rs 2,148.00 apiece, respectively. The company has a market capitalisation of Rs 49,174.56 crore.

The large cap stock rallied over 1% in last 1-year and 19% in last 3-years. It declined 12% in last 6-months.

2. Buy Eicher Motors

The analyst has buy recommendation on Eicher Motors with target price of Rs 3625 apiece. Last trading price is Rs 3129.35 apiece. If you buy Eicher Motors shares now, you can fetch likely return of 16%.

Its market capitalisation is Rs 85,581.96 crore. The stock soared 29% in last 1-year and 74% in last 3-years. In last 6-months, it fell 8%. The large cap stock came into existence in 1982.

3. Buy Maruti Suzuki India Ltd

The brokerage house is bullish on Maruti Suzuki and suggested investors to buy Maruti Suzuki with target price of Rs 10,500 apiece. If you buy Maruti Suzuki, you can get potential return of 22%.

Last trading price of Maruti Suzuki India is Rs 8596.60 apiece with intraday rally of 0.53%. Its 52-week high is Rs 9768.65 apiece and 52-week low is Rs 6540.00 apiece, respectively.

The large cap stock's market capitalisation is Rs 2,59,686.14 crore. It soared 13% in last 1-year and 34% in last 3-years.

4. Buy Ashok Leyland

Motilal Oswal has given buy rating to Ashok Leyland and recommended investors to buy the stock with target price of Rs 185 apiece. Last trading price of the large cap auto stock is Rs 145 apiece. If you buy Ashok Leyland shares now, you can get potential return of 28%.

The stock's 52-week high is Rs 169.40 apiece and 52-week low is Rs 93.20 apiece, respectively. Its market capitalisation is Rs 42,573.85 crore. The stock gave 31% return in last 1-year and 92% return in last 3-years. It fell 11% in last 6-months.

5. Buy Tata Motors

The analyst has suggested investors to buy Tata Motors with target price of Rs 540 apiece. Last trading price of Tata Motors is Rs 428.00 apiece. If you buy Tata Motors share at last trading price, you can expect to receive potential return of 26%.

The stock's 52-week high is Rs 494.50 apiece and 52-week low is Rs 366.05 apiece, respectively. The large cap stock has a market capitalisation of Rs 1,42,153.54 crore. The stock rallied 228% in last 3-years and declined 2% in last 1-year.

Disclaimer

The stocks have been picked from the brokerage report of Motilal Oswal. 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.