Bajaj Auto, M&M, Ashok Leyland among preferred picks as auto stocks race ahead
Also Read: Poll Position: Has the story unraveled for ‘narrative stocks’?Meanwhile, automobile sales volume in May demonstrated robust performance in the SUV segment and showed some positive trends in the Commercial Vehicles (CVs) sector. Year-to-date (YTD) growth for two-wheelers and SUVs was strong, driven by improved consumer sentiment, successful absorption of price hikes, new model launches, and a gradual revival of rural markets, according to analysts.Two-wheeler exports experienced notable year-over-year (YoY) growth despite challenges posed by the Red Sea crisis.
The temporary slowdown in the two-wheeler sector during May was attributed to the Lok Sabha Elections 2024 occurring nationwide. However, the growth is expected to come back in June.
Also Read: NBFC stocks: Valuations turn attractive, says Emkay GlobalIn the Passenger Vehicle (PV) segment, the growth trajectory for SUVs remained strong. On the Commercial Vehicle (CV) side, Ashok Leyland experienced overall growth, and Tata Motors showed significant growth, according to analysis by LKP Securities.The tractor segment presented a mixed trend: Mahindra & Mahindra (M&M) reported mid-single digit growth, whereas Escorts Kubota and VST Tillers Tractors experienced declines.
Nevertheless, both companies reported robust sequential growth.“We remain positive on the auto sector with a cautious view. Our choice is in the following order –two-wheeler, PVs and CVs," said Ashwin Patil, Senior Research Analyst at LKP securities.Also Read: Market post Lok Sabha elections: Not PSU or railways but these sectors to remain in focus in near termStocks specifically, within the two-wheelers, the brokerage firm likes Bajaj Auto more than its other two rivals as it sees green
. Read more on livemint.com
