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Last Updated : Apr 03, 2020 03:06 PM IST | Source: Moneycontrol.com

In pics | Auto sector in value territory, upgraded buy rating for select stocks

Nirmal Bang Institutional Equities Research believe that the industry will take longer to see a revival in demand. We have missed a mild festive period to the lockdown and coming few months are seasonally slow due to the monsoon

The BSE Auto index has corrected 28 percent in the last month over fears of a higher impact from coronavirus (COVID-19) on the economy and further slowdown in the already slow auto industry. This disruption could result in a longer wait for a recovery in auto demand. Along with this, the Indian auto industry is battling with the Bharat Stage IV (BS-IV) to BS-VI transition, which has a deadline of March 31, 2020. (Image: PTI)
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The BSE Auto index has corrected 28 percent in the last month over fears of a higher impact from coronavirus (COVID-19) on the economy and further slowdown in the already slow auto industry. This disruption could result in a longer wait for a recovery in auto demand. Along with this, the Indian auto industry is battling with the Bharat Stage IV (BS-IV) to BS-VI transition, which has a deadline of March 31, 2020. (Image: PTI)

According to Nirmal Bang Institutional Equities Research the industry will take longer to see a revival in demand as it has missed a mild festive period to the lockdown and coming few months will be seasonally slow due to the monsoon. (Image: Reuters)
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According to Nirmal Bang Institutional Equities Research the industry will take longer to see a revival in demand as it has missed a mild festive period to the lockdown and coming few months will be seasonally slow due to the monsoon. (Image: Reuters)

 The recent meltdown in auto stocks has brought the sector in the value zone for long term investors. Research firm Nirmal Bang has upgraded its rating from sell to buy for select stocks in the sector as on March 30, 2020. (Image: Reuters)
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The recent meltdown in auto stocks has brought the sector in the value zone for long term investors. Research firm Nirmal Bang has upgraded its rating from sell to buy for select stocks in the sector as on March 30, 2020. (Image: Reuters)

 Nirmal Bang has upgraded Maruti Suzuki rating from sell to buy post the recent correction of 26 percent. | Target Price: 5,576 | CMP: 4,243. (Image: Auto Expo)
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Nirmal Bang has upgraded Maruti Suzuki rating from sell to buy post the recent correction of 26 percent. | Target Price: 5,576 | CMP: 4,243. (Image: Auto Expo)

 Mahindra & Mahindra (M&M) has corrected 36 percent in the last during the COVID-19 pandemic. Research firm Nirmal Bang reiterating their buy rating with SoTP-based on revised target price of Rs 438 | CMP: 272 (Image: Auto Expo)
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Mahindra & Mahindra (M&M) has corrected 36 percent in the last during the COVID-19 pandemic. Research firm Nirmal Bang reiterating their buy rating with SoTP-based on revised target price of Rs 438 | CMP: 272 (Image: Auto Expo)

 Nirmal Bang upgraded Bajaj Auto from accumulate to buy post the 26 percent correction in the stock in the last month owing to COVID-19 disruption. It is now trading at 11.5x FY22E earnings, which is quite a discount to its long-term average one-year forward PER of 17x. | Target Price: Rs 2,635 | CMP: 2,047 (Image: Moneycontrol)
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Nirmal Bang upgraded Bajaj Auto from accumulate to buy post the 26 percent correction in the stock in the last month owing to COVID-19 disruption. It is now trading at 11.5x FY22E earnings, which is quite a discount to its long-term average one-year forward PER of 17x. | Target Price: Rs 2,635 | CMP: 2,047 (Image: Moneycontrol)

 Nirmal Bang has cut volume and earnings estimates for Eicher Motors as the company is facing supply issue of BS-VI components since Chinese manufacturing has been locked down. The company will also lose sales due to lockdown in India. Post the revision in the estimates, the research firm maintains buy on the stock. | Target Price: Rs 20,372 | CMP: 13,001 (Image:VECV)
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Nirmal Bang has cut volume and earnings estimates for Eicher Motors as the company is facing supply issue of BS-VI components since Chinese manufacturing has been locked down. The company will also lose sales due to lockdown in India. Post the revision in the estimates, the research firm maintains buy on the stock. | Target Price: Rs 20,372 | CMP: 13,001 (Image: VECV)

 Hero MotoCorp has corrected 20 percent in the last month and is now trading at 9.4x our FY22E EPS, which is way cheaper than its average one-year forward PER of 16x. Nirmal Bang reiterate buy on the stock with a one-year target price of Rs 2,471. | CMP: 1,629. (Image: PTI)
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Hero MotoCorp has corrected 20 percent in the last month and is now trading at 9.4x our FY22E EPS, which is way cheaper than its average one-year forward PER of 16x. Nirmal Bang reiterate buy on the stock with a one-year target price of Rs 2,471. | CMP: 1,629. (Image: PTI)

 Ashok Leyland has corrected 50 percent in the last 35 days apart from COVID-19 related market meltdown it is mainly due to continued under-utilisation of existing fleet, no pre-buying before BS-VI transition and no sign of an effective scrappage policy. The Nirmal Bang has maintained its buy rating with a revised target price of Rs 56. | CMP: 41. (Image: PTI)
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Ashok Leyland has corrected 50 percent in the last 35 days apart from COVID-19 related market meltdown it is mainly due to continued under-utilisation of existing fleet, no pre-buying before BS-VI transition and no sign of an effective scrappage policy. The Nirmal Bang has maintained its buy rating with a revised target price of Rs 56. | CMP: 41. (Image: PTI)

First Published on Apr 3, 2020 03:06 pm
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