Auto stocks zoom on mostly in-line April sales volumes; Maruti Suzuki, Eicher Motors surge most

Automobile stocks are in focus after most of the bike, car, truck, and bus manufacturers announced their sales figures for April 2023. The Nifty Auto index was up almost 0.5 per cent as 10 out of 15 stocks were in the green intraday on the NSE at around 11:50 AM.

Heavyweights such as Maruti Suzuki were among the top Nifty gainers as well as on the Auto index up over 2 per cent, followed by Eicher Motors, TVS Motor, and Bajaj Auto each up between 1-2 per cent, whereas Mahindra & Mahindra were flat between 0.5 per cent on the NSE today.

On the contrary, stocks such as Tata Motors, Ashok Leyland, and Hero Moto Corp were down between 1-2.5 per cent on the NSE today.

While auto ancillary stocks such as Sona Comstar, Bosch, Samvardhan Motherson, and Balkrishna Industries among others also contributed to the Auto index’s rally today.

Automakers Maruti Suzuki India and Tata Motors reported a double-digit increase in dispatches to dealers in April as the demand remained robust, especially for the sports utility vehicles.

According to Motilal Oswal, Maruti Suzuki’s sales numbers were In line as volumes grew 6.5 per cent year-on-year (YoY) to 160.5k units. The brokerage gives a 'buy' rating on the stock with a target price of Rs 10,100, which shows an upside of 18 per cent.

While Tata Motors April sales were below Motilal Oswal’s estimates as volumes declined by 4 per cent year-on-year to 69.6k units. It also has a ‘buy’ rating on Tata Group stock with a target price of Rs 548 apiece.

Eicher Motors’ two-wheeler segment Royal Enfield volumes grew by 18 per cent year-on-year (YoY) to 73.1k units, which is in line, according to Motilal Oswal’s estimates, it gives a ‘buy’ rating on the stock with target of Rs 3,550 per share.

Similarly, TVS Motor Company’s wholesales also improve 4 per cent YoY to 306.2k units, and in line as per Motilal Oswal’s expectations, it maintained a ‘neutral’ rating on the counter with a lower target price of Rs 1,035 per share.

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