Auto stocks in spotlight: Anil Singhvi sees buying opportunity in this stock after robust sales

Auto stocks remained in focus after February sales data showed a mixed trend across segments. Mahindra & Mahindra (M&M) emerged as the second-largest carmaker in India, surpassing Hyundai, driven by strong SUV and tractor sales. However, the overall passenger vehicle (PV) segment saw a subdued performance, with Maruti Suzuki, Hyundai, and Tata Motors reporting weaker-than-expected numbers. The Nifty Auto index, already under pressure, has witnessed an 11 per cent decline in February, underperforming the broader Nifty 50, which fell 6 per cent.

M&M posts strong growth, beats estimates

M&M reported a 15 per cent year-on-year (YoY) growth in total auto sales, reaching 83,702 units. Utility vehicle sales surged 19 per cent to 50,420 units, maintaining strong momentum in the SUV segment. Tractor sales were a standout, rising 17.8 per cent YoY to 25,527 units, exceeding estimates. Market experts, including Anil Singhvi, recommend buying M&M futures for intraday, citing the company’s strong sales momentum and favourable agricultural trends.

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Passenger vehicle sales disappoint, Maruti and Hyundai fall short

Maruti Suzuki reported total PV sales of 1.99 lakh units, up just 1 per cent YoY, missing estimates of 2.05 lakh units. Hyundai Motors' PV sales declined 2.9 per cent YoY to 58,727 units, while Tata Motors' domestic PV sales fell 9 per cent to 46,435 units, both underperforming expectations. The weak performance of these companies has added to concerns about slowing consumer demand in the segment.

Two-wheelers show resilience, led by TVS and Bajaj Auto

The two-wheeler (2W) segment outperformed other categories, with TVS Motor posting a 10 per cent YoY increase in total sales to 4.03 lakh units, meeting estimates. Bajaj Auto reported a modest 2 per cent rise in total sales to 3.52 lakh units, slightly below expectations. Hero MotoCorp, however, struggled, with a 17 per cent decline in total sales to 3.88 lakh units, missing estimates of 4.3 lakh units.

Commercial vehicle sales remain mixed, Ashok Leyland surprises

The commercial vehicle (CV) segment showed a mixed trend, with Tata Motors posting a 7 per cent YoY decline in total CV sales to 32,533 units. On the other hand, Ashok Leyland delivered a strong performance, with sales rising 2 per cent YoY to 17,903 units, exceeding estimates of 17,300 units.

Market outlook: Caution prevails despite selective buying

The overall weakness in PV sales and uncertainty in global markets have kept auto stocks under pressure. While M&M remains a strong pick due to its consistent performance, investors are advised to remain cautious on PV stocks like Maruti and Hyundai. The two-wheeler segment, especially TVS and Bajaj Auto, continues to attract interest, while selective CV stocks like Ashok Leyland may see further gains. Analysts suggest closely tracking upcoming macroeconomic cues and demand trends before making fresh bets in the auto sector.