Macquarie sees auto index returns to moderate after 75% gains in FY24; 2 auto stocks that can still run-up

Roshni Agarwal

Jul 10,2024

After the Nifty Auto index delivered a staggering 75 per cent return in FY24, global brokerage Macquarie sees the return from the index to moderate.

The brokerage anticipates slower growth across auto sub-segments (ex-tractors) versus FY24. This is because the sector commands premium valuations to the historical average.

Zee Biz web team

 Pecking order of preference heart

The brokerage prefers M&M over Tata Motors, followed by TVS Motor and Hero MotoCorp.

Bajaj Auto 

  Neutral rating, Target raised to Rs 9487 from Rs 8790, Potential downside: Around 1%

TVS Motor

  Outperform rating, Target raised to Rs 2660 from Rs 2335, Potential upside: 9%

Hero MotoCorp

Outperform rating, Target raised to Rs 6177 from Rs 5707, Potential upside: 12%

Eicher Motors 

Neutral rating, Target raised to Rs 4442 from Rs 4178, Potential downside: over 8%

Eicher Motors

  Maruti Suzuki

Neutral rating, target raised to Rs 12092 from Rs 11565, Potential downside: over 5%

Eicher Motors