Auto shares rallied on Monday, led by heavy beneficial properties in shares of Mahindra & Mahindra (M&M), Maruti Suzuki India, TVS Motors, Eicher Motors and others after the businesses reported their wholesales information for the month of February 2025. Auto shares rally lifted the Nifty Auto index by over 1%, making it among the many prime sectoral index gainers.
India’s largest passenger car maker Maruti Suzuki reported marginal progress whereas Hyundai Motor India and Tata Motors posted a decline of their gross sales in February as a slowdown out there continued with demand remaining muted.
Maruti Suzuki share value gained lower than a p.c, whereas Tata Motors shares declined greater than 1% and Hyundai Motor India inventory plunged almost 3% on March 3. Nonetheless, business autos maker Ashok Leyland shares jumped almost 3% after the corporate reported respectable progress in gross sales. Eicher Motors inventory value additionally added almost 3% and M&M shares rallied over 4%.
Within the two-wheeler section, TVS Motor Firm share value jumped greater than 4%, Bajaj Auto shares gained 1%, whereas Hero MotoCorp shares witnessed a lack of 1%.
Auto Shares to purchase after Feb gross sales information
Quantity momentum slowed throughout classes in February 2025 after the sturdy festive progress, with a two-wheeler decline decrease than that for PVs and CVs.
“TVS Motor Firm and Eicher Motors proceed to realize market share with sturdy product actions and pricing self-discipline, whereas exports revive as macro challenges ease. Valuations for each stay cheap post-correction,” Chirag Jain, Senior Analysis Analyst at Emkay World Monetary Companies Ltd.
In PVs, he believes Maruti Suzuki is greatest positioned with two ICE SUV launches, adopted by Hyundai Motor India, whereas different OEM launches are largely EV (Electrical Automobile) centered.
“M&M faces headwinds with its ICE-SUV cycle behind, peak tractor share, and muted E-SUV bookings. Escorts Kubota could profit from a tractor upcycle after consolidation and element exports to Kubota,” Jain mentioned.
Prime inventory picks within the auto sector by Emkay World consists of TVS Motor Firm and Eicher Motors in two-wheelers; Maruti Suzuki India in PVs and Escorts in Tractors.
Brokerage agency Motilal Oswal Monetary Companies (MOFS) additionally famous that the demand throughout segments stays weak, aside from tractors, the place it expects dispatches to stay optimistic within the close to time period, pushed by optimistic farm sentiment.
Maruti Suzuki is MOFSL’s prime choose amongst auto OEMs, because the brokerage believes the corporate’s upcoming new launches are anticipated to proceed to assist enhance the combination and drive wholesome earnings progress.
MOFSL mentioned it additionally likes M&M given the upcycle in tractors and wholesome progress in UVs. Amongst ancillaries, it prefers Samvardhana Motherson Worldwide, Endurance Applied sciences, and Completely happy Forgings.
Disclaimer: The views and suggestions made above are these of particular person analysts or broking firms, and never of Mint. We advise buyers to verify with licensed specialists earlier than making any funding selections.
