Shriram Pistons rallies 7% as Emkay initiates coverage with 'buy' call, 70% upside

The counter has risen around 45 percent over the past six months.

Domestic brokerage Emkay Global has initiated coverage on Shriram Pistons with a 'buy' rating, sending the stock price of the firm surging 7 percent in early trade on March 14.

Emkay has set the target price for the Shriram Pistons shares at Rs 2,450, implying an upside of 70 percent.

Shriram Pistons has further strengthened its dominant positioning in core products (40-45 percent share in pistons, piston rings, engine valves) along warrant higher PE multiples than the stock is currently commanding.

The company's leadership for over five decades is cemented by its tech partnerships, augmented by in-house R&D capability (adapting global technology to Indian needs/costs, with faster response time), its scale and manufacturing expertise, and its ability to offer complete solutions.

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According to Emkay, the counter should command a 18x FY26 multiple compared to the current 10.7x.

The company has also emerged as the "last man standing" for engine parts, amid significant exports tailwinds/curtailment in ICE components investments globally, noted Emkay. Further, there is extended visibility for ICE engines, as EV penetration faces challenges.

At 9.30am, Shriram Piston shares were quoting Rs 1,542.25 on the NSE, higher by 6.8 percent compared to the previous session's closing price.

Shriram Pistons has also diversified its presence into: core EV products like motors and controllers and powertrain-agnostic technology-intensive parts. These combined can contribute ~10 percent of FY26 sales, said Emkay.

"We build-in 13 percent FY24-26 sales CAGR, on above-industry-growth on higher content, including exports; high aftermarket focus and the ramp-up of recent acquisitions. Our EPS CAGR is 17 percent. We value Shriram Pistons at 18x FY26E PER, 20 percent premium to peers such as Craftsman, Sansera for superior franchise and growth outlook," added Emkay Global.