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Stocks To Buy: KR Choksey Sees 52% Upside In 4 Stocks From Auto Sector, Invest

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Leading brokerage KR Choksey has picked 4 stocks to buy from the auto sector. These stocks are Maruti Suzuki India Ltd, Tata Motors Ltd, Bajaj Auto Ltd, and Ashok Leyland. If you buy these stocks today, you can get maximum return of 52%.

 
Name of CompanyReturn
Tata Motors Ltd52%
Ashok Leyland Ltd32%
Maruti Suzuki India Ltd22%
Bajaj Auto Ltd19%

1. Tata Motors Ltd

1. Tata Motors Ltd

KR Choksey says, "TTMT is seeing good performance traction in the domestic PV and CV businesses. JLR performance is expected to improve as production and supply-related issues clear out. We apply a multiple of 18.5x on FY24E EPS of INR 34.0 and arrive at a Target price of INR 630. We maintain our "BUY" rating on the shares of Tata Motors."

The current market price of Tata Motors on BSE is Rs 414 with an intraday decline of 1.74%. If you buy the stock today, it can give a return of 52%. The company has a market capitalisation of Rs 1,37,766.14 crore. The 3-years return of the large cap stock is 139%.

2. Ashok Leyland Ltd
 

2. Ashok Leyland Ltd

According to the analyst, "AL is gaining market share in a competitive industry despite taking price increases. As commodity costs soften, we expect AL's profitability to improve aided by higher gross margins as well as higher volumes and operating leverage. We have assigned a P/E multiple of 26.5x on FY24E EPS of INR 7.3 to arrive at a target price of INR 194/share. We maintain "BUY" on the shares of Ashok Leyland Ltd."

The current market price of Ashok Leyland on BSE is Rs 147%. The auto stock has a market capitalisation of Rs 43,381 crore. If you buy the stock of Ashok Leyland, you can get potential return of 32%. The large cap stock has given a return of 95% in last 3-years.

3. Maruti Suzuki India Ltd

3. Maruti Suzuki India Ltd

According to KR Choksey, "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."

The current market price of Maruti Suzuki India on BSE is Rs 9171 apiece. If you buy the stock at the current market price, it can fetch you a potential return of 22%. The company has a market capitalisation of Rs 2,77,064.81 crore. The one-year return of the stock is 19%. The large cap company operates in Auto sector.

4. Bajaj Auto Ltd

4. Bajaj Auto Ltd

As per the latest KR Choksey report, "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 "BUY" on the shares of Bajaj Auto."

The current market price of Bajaj Auto on BSE is Rs 3781 apiece with market capitalisation of Rs 1,09,412.56 crore. If you buy the stock of Bajaj Auto, you can get a potential return of 19%. The stock has given a return of 17% in last 3-years.

Disclaimer

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.

Story first published: Thursday, November 3, 2022, 13:26 [IST]
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