Want to Invest in Auto Stocks? What to buy or avoid – Brokerages’ views on 15 shares

Auto Stocks To BUY: Investors looking at the auto sector may find mixed opportunities across stocks. Brokerages have updated their ratings and targets for 14 major auto, tech, and ancillary companies, highlighting potential gains and risks.

Some stocks show significant upside, while others face notable downside due to weak demand, commodity inflation, and market-specific challenges.

This report takes a closer look at brokerage views, current market prices, and target prices to help investors decide which auto stocks to buy or avoid.

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TVS Motors Share Price Target

TVS Motors is seeing strong brokerage support. Goldman Sachs upgraded the stock to Buy from Neutral with a target of Rs 4,100, citing “superior volume visibility versus peers driven by upcoming premium products such as RR 300, RTX 450, and Norton.”

The brokerage also noted that the company is “better placed to pass through raw material inflation” and that the PLI scheme could provide a 35 basis points margin tailwind in FY28E.

JP Morgan upgraded TVS Motors to Overweight from Neutral, with a target of Rs 4,440. Based on the current market price of Rs 3,738.80, Goldman Sachs’ target implies an upside of nearly 9.7 per cent, while JP Morgan’s target shows an upside of 18.7 per cent.

Hyundai Motor Share Price Target

Goldman Sachs maintained a Buy rating on Hyundai Motor but lowered the target to Rs 2,020 from Rs 2,350. JP Morgan maintained Overweight, with a target cut to Rs 2,165 from Rs 2,660. The stock is trading at Rs 1,789.

This suggests an upside of 12.9 per cent from Goldman Sachs’ target and 21 per cent from JP Morgan’s target. Brokerages cited cautious demand trends but positive long-term positioning in the market.

Ashok Leyland Share Price Target

Ashok Leyland has a mixed outlook. Goldman Sachs kept a Neutral rating with a target of Rs 161, down from Rs 188, while JP Morgan maintained Neutral with a target of Rs 170, slightly lower than the previous Rs 175.

The current market price is Rs 172.80. Goldman Sachs’ target implies a downside of 6.8 per cent, whereas JP Morgan’s target shows a minor downside of 1.6 per cent. The stock faces ongoing demand challenges in the commercial vehicle segment.

Hero MotoCorp Share Price Target

Brokerage views diverge for Hero MotoCorp. Goldman Sachs maintained a Sell rating with a target of Rs 4,300, down from Rs 4,400, implying a downside of 19.2 per cent from the current price of Rs 5,325.

JP Morgan, however, maintains an Overweight rating with a target of Rs 6,385, implying an upside of 19.9 per cent. Commodity inflation and volume uncertainty continue to influence the stock.

Tata Motors PV Share Price Target

Tata Motors’ passenger vehicle segment sees cautious outlooks. Goldman Sachs maintained Neutral with a target of Rs 308, down from Rs 330.

BOFA reiterated an Underperform rating with a price objective of Rs 315. With a current price of Rs 336.70, the stock shows a downside of 6.5–8.5 per cent based on broker targets.

BOFA noted that “JLR’s Q4 bounce back was expected (+61 per cent Q/Q), but underlying demand remains weak across markets.” China and the MENA regions saw steep declines of 30–35 per cent due to market challenges and the Iran war.

Bajaj Auto Share Price Targets

Brokerages see mixed opportunities in the auto sector. According to Bank of America Securities, the valuation for two-wheelers is reasonable at 21 times PE. They said two-wheelers are a defensive bet amid the current macro environment, with better pricing discipline, export and FX tailwinds, and lower growth shock.

Net margin and EPS cut risk is minimal. Higher crude prices could benefit exports to Africa, including Nigeria, and the EV business. The brokerage is positive on Bajaj Auto, likes HMCL for its valuation cushion, and recommends EIM as a Buy.

Bank of America Securities has given Bajaj Auto a target of 10,700, showing 13 per cent upside from the current market price of 9,435. JP Morgan maintained a Neutral rating on Bajaj Auto but raised its target to 9,780, indicating 4 per cent upside.

Maruti Suzuki Share Price Target

JP Morgan maintained an Overweight on Maruti Suzuki but lowered the target to Rs 16,130 from Rs 17,000. The current price is Rs 13,518, implying an upside of 19.3 per cent. The brokerage cited stable demand and market positioning as key support factors.

Auto Tech Stocks

KPIT Technologies Share Price Target

Goldman Sachs maintained a Neutral rating, cutting the target to Rs 730 from Rs 830. The stock is trading at Rs 712.15, showing a modest upside of 2.5 per cent. The brokerage noted cautious adoption of technology solutions by automotive clients.

CE Info Systems Share Price Target

Goldman Sachs maintained a Buy rating with a target of Rs 1,400, down from Rs 1,630. The stock trades at Rs 932.80, implying an upside of 50 per cent. Steady order books and client base support the brokerage’s positive view.

Auto Equipment / Ancillary Stocks

Bosch Share Price Target

UBS maintained a Sell rating with a target of Rs 27,920. The stock is trading at Rs 35,910, implying a downside of 22.3 per cent. Bosch plans to acquire 100 per cent of Bosch Chassis Systems India, focused on automotive safety solutions such as ABS and ESC, for Rs 90.7 billion. UBS said the acquisition is “likely to be value-accretive from both EPS and return-ratio standpoint.”

Apollo Tyres Share Price Target

JP Morgan downgraded Apollo Tyres to Neutral, cutting the target to Rs 445 from Rs 570. The CMP of Rs 430.75 suggests a small upside of 3.2 per cent.

Bharat Forge Share Price Target

JP Morgan maintained Neutral, lowering the target to Rs 1,630 from Rs 1,660. With a CMP of Rs 1,760, the stock shows a downside of 7.4 per cent. Commodity volatility remains a concern.

Sona BLW Precision Share Price Target

JP Morgan maintained Neutral, raising the target slightly to Rs 460 from Rs 455. The current price is Rs 529, indicating a downside of 13 per cent.

Samvardhana Motherson Share Price Target

JP Morgan maintained Overweight, with a target of Rs 135 from Rs 140. The stock trades at Rs 116.56, suggesting an upside of 15.8 per cent.

M&M Share Price Target

JP Morgan maintained Overweight, with a target of Rs 3,980, down from Rs 4,300. With a current price of Rs 3,167.60, the stock shows a potential upside of 25.7 per cent.

Nifty Auto Index

Nifty Auto fell 222.85 points, or 0.86 per cent, to 25,780.10 on Friday, underperforming Nifty 50, which declined 186.60 points, or 0.78 per cent, to 23,810.75.

Nifty Auto is 3,399 points below its 52-week high of 29,179.10, while Nifty 50 is 2,562.45 points below its 52-week high of 26,373.20.

Over the past week, Nifty Auto rose 7.01 per cent compared with Nifty 50’s 4.83 per cent gain. Year-to-date, Nifty Auto is down 9.48 per cent, slightly more than Nifty 50’s 8.94 per cent fall, but it remains 28 per cent above its 52-week low, higher than Nifty 50’s 7.34 per cent margin from its low.