TVS Motor, Hero MotoCorp or Eicher Motors? Investors may pick this one for better returns

TVS Motor Company and Eicher Motors have rewarded investors with returns to the tune of 74 per cent and 23 per cent in the past one year, sharply outperforming the overall market as well as the auto basket. The stock of Hero MotoCorp, however, has lagged, having shed about three per cent of its value during this period. Do you have these stocks in your portfolio? 

Here's a lowdown on what analysts make of these companies — TVS Motor, Hero MotoCorp, and the maker of Royal Enfield motorcycles:

What to do with TVS shares?

Jefferies is bullish on TVS Motor Company. The brokerage is of the view that the automaker is well-placed to benefit from an industry-wide recovery in the two-wheeler segment. 

Jefferies has a 'buy' call on TVS with a target price of Rs 1550 apiece. 

With its timely focus on electric vehicles, TVS has risen to the second position in the two-wheeler segment within the space in recent months, according to the brokerage. 

Equity Rush CEO Kunal Saraogi has a 'hold' call on TVS Motor with a stop loss at Rs 1,000 apiece. TVS is outperforming the whole auto sector, he pointed out in an interaction with Zee Business. 

TVS shares are moving within a range of Rs 1,000-1,125 with a breakout possible at Rs 1,130/1,135.    

What to do with Hero MotoCorp shares?

Himanshu Gupta, VP-Research at Globe Capital Markets, suggests avoiding Hero MotoCorp shares. 

A temporary rebound to Rs 2,400/2,420 is likely in Hero MotoCorp shares mainly due to the news of the company taking a price hike, but there is no reversal pattern visible on the chart that can make it an aggressive ‘buy’, he told Zee Business. 

ALSO READ: Hero MotoCorp shares rise after auto major announces price hike in select models; why analysts are divided 

On the contrary, Vikas Sethi, MD at Sethi Finmart, is bullish on the two-wheeler maker following the price hike. Sethi has a ‘buy’ call on Hero MotoCorp for a target of Rs 2,400 with a stop loss at Rs 2,335.

What to do with Royal Enfield parent company Eicher Motors' shares? 

Yes Securities has a ‘buy’ rating on Eicher Motors with a target price of Rs 3,942 apiece. 

The recent launches could be an inflection point for Royal Enfield as a completely new and improved platform could drive a revival, according to the brokerage. 

Yes Securities expects VE Commercial Vehicle – a joint venture between the Volvo group and Eicher Motors – to see a cyclical recovery both in volume as well as profitability..

TVS Motors vs Hero MotoCorp vs Royal Enfield: A comparison in terms of sales volumes 

For February 2023, TVS Motors reported growth of 28 per cent on a year-on-year basis in sales of two-wheelers in the domestic market. 

Royal Enfield saw growth of 23.6 per cent in sales of its motorcycles in the domestic market for the period. 

Hero MotoCorp’s domestic sales of motorcycles and scooters grew 15.3 per cent.

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