Auto Sector Stock Tips: There are four such stocks in the auto sector which can make investors earn up to 60 percent.
Auto Sector Stock Tips: The domestic stock market remains volatile and is facing the challenges of rising inflation and increasing interest rates. Talking about today (June 10), both Sensex and Nifty 50 broke more than 1.30 percent in early trade. In such a situation, market analysts are recommending stock specific actions to protect their portfolio from uncertainty. Brokerage firm Angel One has selected four such stocks in the auto sector that can make investors earn up to 60 percent.
Ashok Leyland: BUY
Target Price: Rs 164
- Apart from Nifty and Sensex, the shares of Ashok Lessand have become stronger than Nifty Auto Index this year. Its prices have strengthened 7 percent so far this year in 2022 and are showing bullish trends in the future as well.
- The production volume of the Medium and Heavy Commercial Vehicles (MHCV) industry is at its lowest level in the last 12 years and now analysts believe that Ashok Leyland is in a better position to capitalize on the revival in the CV segment.
- According to analysts, Ashok Leyland can get the most benefit from the Voluntary Scrappage Policy of the Central Government.
- Right now its shares are at a price of Rs 137 and you can invest in it at a target of Rs 164 per share i.e. 20 percent profit.
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Sona BLW Precision Forgings: BUY
Target Price: Rs 843
- Gold BLW has not done well this year and has slipped 19 per cent. However, analysts believe that now a bullish trend can be seen in it. Angel One has fixed a target price of 40 percent upside at Rs 843 for investing in it.
- Sona BLW is one of the leading automotive technology companies in the country and about 40 percent of its revenue comes from battery electric vehicles (BEV) and hybrid vehicles.
- Sona BLW has a market share of 55-90 per cent in Passenger Vehicles, Commercial Vehicles and Tractor OEMs (Original Equipment Manufacturers) in the country. Market analysts believe that the company’s strong position in the market is going to be maintained.
Ramakrishna Forgings: BUY
Target Price: Rs 256
- Shares of Ramkrishna Forgings have lost 14 per cent this year. Right now its price is Rs 162 and by investing in it, you can earn up to 58 percent profit. Angel One has fixed a target of Rs 256 for investing in it.
- This company is the leading forging player in the country and in the near term, it will benefit from improving the demand outlook in the medium and heavy commercial vehicle industry in the country and abroad.
- The company’s capital expenditure was affected due to industry slowdown in the last few years but now the outlook looks better in the medium term. According to Angel One, its volume can grow at a CAGR of 29 percent (Compound Annual Growth Rate) in the financial year 2021-2024.
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Suprajit Engineering: BUY
Target Price: Rs 485
- This year its prices have fallen by 33 percent and now it is at a price of Rs 303. For investing in this, Angel One has fixed a target price of Rs 485 per share, that is, up to 60 percent profit can be earned on investment in it.
- This company supplies automotive cables on a large scale to domestic vehicle companies of two wheelers and passenger vehicles. Due to its diversified exposure and low-cost player, its market share is expected to grow better.
- For the last few years, the profits of Suprajit Engineering have increased and the balance sheet of the company is strong ie it has net cash.
- If auto companies around the world increase production, it will benefit.
(Article: Kshitij Bhargava)
(The stock recommendations given in the story are those of the respective research analyst and brokerage firm. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
