Auto Stocks: If you look at the figures of Auto Sales in September, there is a glimpse of improvement in the economy.
If you look at the figures of Auto Sales in September, now the economy has started showing improvement. It is clear from the figures of September that volume growth is getting better in the auto industry. Demand is slowly coming on track. In addition to low-interest rates, better finance facility after lockdown, better monsoon and strong rural sentiment have also contributed. Experts and brokerage houses once again have increased confidence in the sector. We have selected some such shares here, which can earn you good money in the coming days.
Improvement in production level
According to brokerage house MK Global, retail is showing steady improvement. The wholesale market has also improved. There is an improvement in the production level and it will be further improved. According to the report, the volume in the private vehicle industry has increased by 31 per cent on an annual basis. The domestic volume of Tata Motors increased by 161 percent and that of Maruti by 33 percent. However, low base has also benefited. Now companies are also starting to bring new models. Talking about major unlisted companies, Hyundai, Kia and Honda have grown 25 per cent, 147 per cent and 10 per cent in volume.
An upward movement in tractors and two-wheelers as well
Domestic two-wheeler volume has also increased. Bajaj Auto, Hero MotoCorp have growth of 24 per cent and 10 per cent in volume. However, TVS volumes have been down by 1 per cent. Domestic growth was also better in the tractor segment. Mahindra and Mahindra saw 18 per cent growth and Eskatra saw 9 per cent growth. There is pressure in the commercial vehicle industry right now.
Pressure on a three-wheeler and commercial segment
According to brokerage house Motilal Oswal, the wholesale figures in September 2020 have remained as expected. While it is considered a seasonally weak month, there has been a good growth of 31 per cent year-on-year in private vehicles volume. At the same time, there was 14 percent growth in the Au Wheeler segment. However, there is pressure in the commercial vehicles segment. There is still pressure in the three-wheeler segment. Its volume has fallen by 41 percent on an annual basis.
According to brokerage house Motilal Oswal, the auto sector is expecting a good demand during the coming festive season. You will also get the benefit of attractive valuation. However, investors should choose the stocks of the same companies, which are in strong competitive positions, which have better visibility in-demand recovery, stronger balance sheets and are margin drivers.
Which shares to invest in
Target: Rs 89
Current Price: Rs 75
Target: Rs 3,691
Current Price: Rs 2,985
Target: Rs 2,754
Current Price: Rs 2,198
Target: Rs 3,701
Current Price: Rs 3,151
Target: Rs 718
Current Price: Rs 610
# Advice: MK Global
Mahindra and Mahindra, Hero Motocorp
Motherson Sumi, Endurance Technology
# Advice: Motilal Oswal
(Note: We have given advice here based on the report of the brokerage house. Seeing the risk of the market, consult the experts before investing.)
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