Maruti Suzuki India, Mahindra & Mahindra (M&M) and TVS Motor Company. Among auto ancillaries, the brokerage has a ‘Buy’ rating on Bharat Forge, Samvardhana Motherson International, Sansera Engineering and Suprajit Engineering. Also Read: Stocks To Buy: HDFC Securities sees 14-18% upside for SAIL Here are the three auto stocks to buy after Q3 results, as per HDFC Securities: Maruti Suzuki’s Q3FY24 net profit at ₹3,130 crore surpassed HDFC Securities’ estimates of ₹2,820 crore, led by a better-than-expected margin.
The margin beat was led by lower commodity costs, lower royalty, and positive forex impact. On the back of its aggressive launch spree over the last few quarters, Maruti Suzuki continues to be the market leader in the UV segment. While its order backlog has reduced to 215,000 units, it is on expected lines given the improved supply.
“The success of GV (9- 10k units per month) is a case in point that customers are considering Maruti’s products as “worthy contenders" even in the >INR1500k segment, where a few investors were so far doubting the company’s “right to win". With exports picking up and higher utilisation across plants (Manesar, SMG Gujarat) we expect the EBITDA margin to expand 240 bps over FY23-26E," said HDFC Securities. It maintained a ‘Buy’ call on the stock and raised the target price to ₹12,887 per share from ₹12,052 earlier.
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