Elara's top auto picks and target prices
Elara has a 'Buy' rating on all four automobile stocks.
M&M has a target price of Rs 4,578, indicating an upside potential of 60.4 per cent from the brokerage's assessed market price. Maruti Suzuki has a target price of Rs 17,298, with an upside potential of 48.8 per cent.
Eicher Motors has a target price of Rs 9,424, implying an upside potential of 33.7 per cent, while TVS Motor has a target price of Rs 4,668, indicating an upside potential of 17.3 per cent.
Elara said automobile demand remained healthy in Q2 FY27, supported by improved affordability and festive demand. However, a high base could moderate headline growth to single digits in the second half of FY27.
Top auto ancillary picks
Among auto ancillaries, Elara has a 'Buy' rating on Minda Corporation, with a target price of Rs 926, hinting at an upside potential of 40.4 per cent. Uno Minda also has a 'Buy' rating, with a target price of Rs 1,476, indicating an upside potential of 31.8 per cent.
Gabriel India has a 'Buy' rating with a target price of Rs 1,664, implying an upside potential of 23 per cent, while Sona BLW Forgings also has a 'Buy' rating, with a target price of Rs 919, indicating an upside potential of 12 per cent from the brokerage's assessed market price.
Elara expects revenue across its auto ancillary coverage universe to grow around 24 per cent YoY and 6 per cent QoQ (quarter-on-quarter) in Q2 FY27, supported by healthy underlying production and content growth.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.