Hero MotoCorp, Bajaj, Ashok Leyland & Sansera are Axis Securities' top 4 auto stock picks
Axis expects Ashok Leyland to benefit from a strong pipeline of new launches—LNG trucks, upgraded buses, and bi-fuel LCVs—alongside its newly launched Intelligent Vehicle Acceleration Control (I-VAC) system.
- Aug 20, 2025,
- Updated Aug 20, 2025 12:05 PM IST
Axis Securities on Wednesday named Hero MotoCorp Ltd, Bajaj Auto Ltd, Ashok Leyland Ltd, and Sansera Engineering Ltd as its top conviction ideas in the auto sector. The brokerage has assigned ‘Buy’ ratings on all four counters, projecting significant upside from current levels.
Hero MotoCorp | Share price target: Rs 5,220
Axis Securities is bullish on Hero MotoCorp’s ability to reclaim market share, supported by strong performance in the Deluxe 100cc and 125cc (Destini 125, Xoom 125, Xtreme 125) segments.
The company’s EV business has seen robust gains, with market share doubling year-on-year to 7 per cent in Q1 FY26, and rising further to 10 per cent by July, led by the VIDA VX2 rollout. While EV investments reached Rs 189 crore, Hero’s ICE EBITDA margin improved to 16.8 per cent, with overall margin at 14.4 per cent.
The company also reported 27 per cent YoY growth in its global business, aiming to scale exports toward 10 per cent of revenue and volume. Axis has set a target price of Rs 5,220.
Bajaj Auto | Share price target: Rs 9,360
Bajaj Auto demand from LATAM, Southeast Asia, and Brazil (7,000 units) is expected to continue. Capacity expansion in Brazil is expected to unlock further growth, Axis Securities said.
On the EV side, Bajaj holds a commanding 31 per cent share of the e-2W market, with robust high-single-digit margins. Axis noted Bajaj Auto Credit Ltd—its NBFC—as a “silent value compounder,” with PAT of Rs 102 crore in Q1 FY26 and an AUM of Rs 12,000 crore, making it increasingly accretive to valuations. The brokerage has given the stock a target price of Rs 9,360.
Ashok Leyland | Share price target: Rs 135
Axis expects Ashok Leyland to benefit from a strong pipeline of new launches—LNG trucks, upgraded buses, and bi-fuel LCVs—alongside its newly launched Intelligent Vehicle Acceleration Control (I-VAC) system for enhanced fuel efficiency.
While defence revenues dipped to Rs 120 crore in Q1 FY26 (from Rs 400 crore a year earlier), the company maintains a robust Rs 1,000 crore order book and Rs 2,000 crore in tender wins. Capacity expansion across Andhra Pradesh, Lucknow, Alwar, and Trichy, together with an expanding dealer network, is poised to support growth. Axis has set a target price of Rs 135.
Sansera Engineering | Share price target: Rs 1,500
Sansera Engineering’s diversified order book of Rs 2,024 crore spans automotive downstream services (ADS) at 24 per cent, xEVs at 10 per cent, and ICE PV+CV at 30 per cent. In Q1 FY26, the company secured Rs 173 crore in new orders, including from North American OEMs, a new US tractor player, and Collins Aerospace.
Though Q1 FY26 revenue grew modestly (3 per cent YoY) due to short-term headwinds, Axis anticipates growth acceleration starting FY27. EBITDA margins held at 17.2 per cent, underpinned by Sweden operations, Fitwell's scale-up, and improved raw-material yield. The target price for Sansera Engineering is Rs 1,500.
On the sector outlook, the brokerage favours a ‘Buy on Dips’ strategy for TVS Motors and Maruti Suzuki. “In the PV/tractor segment, we favour Mahindra & Mahindra (non-coverage), given its strong SUV product portfolio and leadership position in the domestic tractor industry,” Axis Securities said.
Axis Securities on Wednesday named Hero MotoCorp Ltd, Bajaj Auto Ltd, Ashok Leyland Ltd, and Sansera Engineering Ltd as its top conviction ideas in the auto sector. The brokerage has assigned ‘Buy’ ratings on all four counters, projecting significant upside from current levels.
Hero MotoCorp | Share price target: Rs 5,220
Axis Securities is bullish on Hero MotoCorp’s ability to reclaim market share, supported by strong performance in the Deluxe 100cc and 125cc (Destini 125, Xoom 125, Xtreme 125) segments.
The company’s EV business has seen robust gains, with market share doubling year-on-year to 7 per cent in Q1 FY26, and rising further to 10 per cent by July, led by the VIDA VX2 rollout. While EV investments reached Rs 189 crore, Hero’s ICE EBITDA margin improved to 16.8 per cent, with overall margin at 14.4 per cent.
The company also reported 27 per cent YoY growth in its global business, aiming to scale exports toward 10 per cent of revenue and volume. Axis has set a target price of Rs 5,220.
Bajaj Auto | Share price target: Rs 9,360
Bajaj Auto demand from LATAM, Southeast Asia, and Brazil (7,000 units) is expected to continue. Capacity expansion in Brazil is expected to unlock further growth, Axis Securities said.
On the EV side, Bajaj holds a commanding 31 per cent share of the e-2W market, with robust high-single-digit margins. Axis noted Bajaj Auto Credit Ltd—its NBFC—as a “silent value compounder,” with PAT of Rs 102 crore in Q1 FY26 and an AUM of Rs 12,000 crore, making it increasingly accretive to valuations. The brokerage has given the stock a target price of Rs 9,360.
Ashok Leyland | Share price target: Rs 135
Axis expects Ashok Leyland to benefit from a strong pipeline of new launches—LNG trucks, upgraded buses, and bi-fuel LCVs—alongside its newly launched Intelligent Vehicle Acceleration Control (I-VAC) system for enhanced fuel efficiency.
While defence revenues dipped to Rs 120 crore in Q1 FY26 (from Rs 400 crore a year earlier), the company maintains a robust Rs 1,000 crore order book and Rs 2,000 crore in tender wins. Capacity expansion across Andhra Pradesh, Lucknow, Alwar, and Trichy, together with an expanding dealer network, is poised to support growth. Axis has set a target price of Rs 135.
Sansera Engineering | Share price target: Rs 1,500
Sansera Engineering’s diversified order book of Rs 2,024 crore spans automotive downstream services (ADS) at 24 per cent, xEVs at 10 per cent, and ICE PV+CV at 30 per cent. In Q1 FY26, the company secured Rs 173 crore in new orders, including from North American OEMs, a new US tractor player, and Collins Aerospace.
Though Q1 FY26 revenue grew modestly (3 per cent YoY) due to short-term headwinds, Axis anticipates growth acceleration starting FY27. EBITDA margins held at 17.2 per cent, underpinned by Sweden operations, Fitwell's scale-up, and improved raw-material yield. The target price for Sansera Engineering is Rs 1,500.
On the sector outlook, the brokerage favours a ‘Buy on Dips’ strategy for TVS Motors and Maruti Suzuki. “In the PV/tractor segment, we favour Mahindra & Mahindra (non-coverage), given its strong SUV product portfolio and leadership position in the domestic tractor industry,” Axis Securities said.