Sharekhan Suggests Best Stocks To Buy In Auto & Ancillaries Sector, Can Rise Upto 46%: Invest?

Nifty 50 started bullish today, however, in the late trading hours it has fallen marginally. It stood at 15,933.65 points, falling by 0.21%, till 1.52 pm today. Reputed brokerage firm Sharekhan has given buy ratings to these below-mentioned stocks for high returns.

Stocks To Buy: Current market price and Target price

The current market price of Alicon Castalloy Ltd. stood at Rs. 643/ share, and Sharekhan has estimated a target price for the stock at Rs. 847/share. In the past one year the company's stock price has fallen by 18.97%, in the past 6 month the stock price has fallen by 20.30%. Its market capitalization is Rs. 1,062 crore.

The current market price of Hero Motocorp stood at Rs. 2,833/ share, and Sharekhan has estimated a target price for the stock at Rs. 3,210/share. In the past one year the company's stock price has fallen by 3.87%, in the past 6 month the stock price has gained by 8.51%. Its market capitalization is Rs. 55,650 crore.

The current market price of Ramkrishna Forgings stood at Rs. 163/ share, and Sharekhan has estimated a target price for the stock at Rs. 238/share. In the past one year the company's stock price has gained by 5.87%, in the past 6 month the stock price has fallen by 24.49%. Its market capitalization is Rs. 2,501 crore. It is a significant Auto Ancillaries stock in India.

Stock	Current market price	Target price	1 Yr Potential Return
Alicon Castalloy Ltd.	Rs. 643	Rs. 847	31.72%
Hero Motocorp	Rs. 2,833	Rs. 3,210	13.30%
Ramkrishna Forgings	Rs. 163	Rs. 238	46.01%

Stocks To Buy: Opinion By Sharekhan

Commenting on the stocks, the brokerage firm said, "The Sharekhan universe of automobile companies is expected to perform moderately in Q1FY2023 with a 30.4% y-o-y revenue growth due to a low base in Q1FY2022, affected due to Covid-induced supply constraint previous year. During the quarter, a recovery was seen in the in two-wheeler (2W) and passenger vehicle (PVs) segments q-o-q, while commercial vehicles (CV) sales volumes declined q-o-q due to seasonality. Auto ancillary companies are expected to perform well on a sequential basis, driven by revenue diversification and increasing traction in electrical vehicle (EV) segment."

Disclaimer

The above stocks were picked from the brokerage report of Sharekhan. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.