M&M, Maruti, Bajaj Auto, Hero MotoCorp, Eicher, Hyundai Motor: Targets post Nov sales data

Brokerage Nirmal Bang Institutional Equities has retained 'Buy' rating on Maruti Suzuki India Ltd, Mahindra & Mahindra, Ashok Leyland, Eicher Motors and Hero MotoCorp, while retaining its 'Hold' on Hyundai Motor India and TVS Motor, following the November auto sales data. The brokerage said the auto sector delivered strong performance for the month across passenger vehicles, two-wheelers, commercial vehicles, and tractors with most major OEMs achieving double-digit YoY growth supported by festive spillover, GST 2.0-driven affordability improvements, strengthening rural sentiment, and aided further by healthy export traction.

Its top recommendations are M&M (target price: Rs 4,142) and Maruti Suzuki (target: Rs 18,716) in the four-wheeler segment and Eicher Motors (target: Rs 7,975) and Hero MotoCorp (target: Rs 6,482) in the two-wheeler space. It likes ASK Automotive (target: Rs 599) and CEAT (target: Rs 4,545) in the auto components and the tyre space, respectively. 

On two-wheeler space, Nirmal Bang said volumes remained strong in November, supported by post-festive and wedding season demand, improved rural liquidity, and GST 2.0-led affordability benefits, particularly in the commuter segment. Retail traction remained healthy across urban and rural markets with exports continuing to perform well across Asia, Africa, and Latin America. 

"A structural shift in mix is evident — scooters are gaining share driven by new launches in ICE and EV formats, while premium motorcycles remain resilient, though demand for >350cc models has softened following higher GST rates. EV adoption continues to improve as product reliability and affordability increase. The upcoming ABS regulation for sub-125cc motorcycles could trigger some pre-buying toward the year-end. We expect 8–10 per cent YoY industry growth in FY26E with continued strength in both domestic and export markets," it said.

In the four-wheeler space, Nirmal Bang said a shift of small cars into the 18 per cent GST slab has revived mass-market demand and increased OEM focus on compact SUVs and premium hatchbacks. It believes retail momentum is holding up post-festive season, reflected in healthy enquiries for entry segments where OEMs like Maruti Suzuki and Tata Motors continue to benefit. 

"However, SUVs remain the main volume driver, while discounting—especially in hatchbacks, sedans, and entry trims—continues to stay high with customers also advancing purchases ahead of the expected January price hikes. Export demand further supported overall growth. With favorable rural income trends, lower interest rates, and easier financing, the demand improvement looks structural rather than festive-led, marking a clear rebound from a softer H1FY26," it said.

In the CV segment, the demand is being supported by strong freight movement, improving rural logistics, and sustained infrastructure and construction activity. The recent 10 per cent GST reduction for MHCVs and LCVs has enhanced affordability and helped revive sentiment, complemented by improving exports, mining operations, and higher infrastructure spend. 

Tractor demand remained firm in November and we stay positive on H2FY26, backed by improved rural income visibility and strong farm sentiment.