More Stories

Informist, Saturday, Sept. 20, 2025

 

MUMBAI – Nuvama Institutional Equities downgraded its ratings on Eicher Motors Ltd. and Bajaj Auto Ltd. to 'hold' from 'buy' due to limited upside potential. The brokerage has a target price of INR 6,900 and INR 9,800, respectively, on the two stocks.

 

The brokerage raised its target prices on various automobile companies due to improving demand outlook. It raised its target prices on TVS Motor. Co., Hero MotoCorp Ltd., Hyundai Motor India Ltd., Maruti Suzuki India Ltd., Mahindra & Mahindra Ltd., Tata Motors Ltd., Ashok Leyland Ltd., Escorts Kubota Ltd., Bajaj Auto, and Eicher Motors by 4-27%. TVS Motor, Maruti Suzuki, and Hyundai Motor were the stocks which got the biggest target price increase.

 

Consequently, Nuvama has a target price of INR 4,100 and INR 6,200 on TVS Motor and Hero MotoCorp, respectively. Its target price on Hyundai Motor, Mahindra & Mahindra, Tata Motors, and Maruti Suzuki is INR 3,200, INR 4,200, INR 680, and INR 18,200, respectively. Its also has a target price of INR 123 and INR 3,800 on Ashok Leyland and Escorts Kubota, respectively.

 

"Among these OEMs, MSIL, TVSL and MM are focused on multiple launches ahead, which should aid in covering whitespaces and support volume performance," Nuvama said in its report. These three companies in particular will also be boosted due to better affordability aiding recovery in entry-level segment. 

 

These rise in target prices are on the back of a huge boost in consumer sentiment from the GST cuts announced by the government, the report said. The brokerage expects a double-digit growth in the festival season across the passenger vehicles, two-wheelers, and tractor segments. 

 

"Led by benefits of GST cuts, new products, upcoming pay commission for government employees and interest rate/income tax reforms, we are upgrading Auto OEM revenue estimates by up to 5%...moreover, better scale and lower discounts are supporting EBITDA upgrades by up to 14%," the brokerage said in its report. "We maintain our constructive view ahead for 2W, Tractor and PV, with expectations of volume CAGR at 6%, 6% and 5%, respectively, over FY25–28," it added.  End

 

Reported by Akash Mandal

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.