Tata Motors, Maruti Suzuki, M&M, HeroMoto, Bajaj Auto: Check target prices for auto stocks
Nirmal Bang has observed a varied performance across the automobile sector, particularly noting a divergence in the two-wheeler and passenger vehicle (PV) original equipment manufacturers during Q1FY26.
- Sep 2, 2025,
- Updated Sep 2, 2025 12:05 PM IST
Nirmal Bang Institutional Equities has observed a varied performance across the automobile sector, particularly noting a divergence in the two-wheeler (2W) and passenger vehicle (PV) original equipment manufacturers (OEMs) during Q1FY26. This mixed outcome stems from premiumisation trends and a recovery in export markets, while domestic demand remains tempered.
Two-wheeler OEMs reported robust export growth, although the domestic market for entry-level segments showed signs of moderation. In contrast, passenger vehicle sales experienced a decline domestically; however, strong export volumes provided some relief. Mahindra & Mahindra displayed notable revenue growth year-on-year, though Maruti Suzuki and Hyundai exhibited weaker volume numbers despite their resilient export performance, Nirmal Bang noted.
The commercial vehicle (CV) segment faced challenges with slight sales declines, although exports remained strong. Passenger CVs showed promising growth, whereas the goods segment experienced mild weakness due to monsoon disruptions and subdued infrastructure activities. Despite these challenges, volumes are projected to improve in the second half of FY26, supported by increased infrastructure activity, it said
The auto ancillary segment presented a mixed performance, impacted by global macroeconomic pressures. Specifically, the tyre segment faced weak results due to elevated rubber prices, unfavourable product mixes, and export challenges across companies, it added.
Looking ahead to Q2FY26, auto volume growth is expected to benefit from government initiatives such as Repo/CRR rate cuts and a proposed GST rate cut. Key factors influencing the sector include recent tax relief in two-wheelers, anticipated rural and urban recovery, and new E-2W launches. Additionally, new model launches in SUVs and EVs, coupled with increased e-commerce activities, are predicted to drive volumes in small commercial vehicles (SCVs).
Nirmal Bang recommends Mahindra & Mahindra in four-wheelers and Eicher Motors in two-wheelers, emphasising the growth potential in the middleweight segment. ASK Automotive, followed by Suprajit Engineering, remain favoured choices in the components sector.
Nirmal Bang has a ' buy' rating on M&M (Target Price: Rs 3,756), Eicher Motors (Target Price: Rs 6,382), Suprajit Engineering (Target Price: Rs 541), CEAT (Target Price: Rs 4,257) and ASK Automotive (Target Price: Rs 598). It has a 'sell' tag for TVS Motors (Target Price: Rs 2,972), Balkrishna Industries (Target Price: Rs 2,391) and Hyundai Motor India (Target Price: Rs 2,060).
It has suggested to 'hold' Maruti Suzuki (Target Price: Rs 14,502), Ashok Leyland (Target Price: Rs 140), Bajaj Auto (Target Price: Rs 9,179), Hero MotoCorp (Target Price: Rs 4,910), Sansera Engineering (Target Price: Rs 1,421) and Apollo Tyres (Target Price: Rs 498).
Early festive period influenced dispatches, deviating from the retail trend. 2W saw high YoY rise in dispatches versus flat retail sales. Cars saw better retail sales, said InCred Equities. "GST cut stimulus hopes have led to a spike in Nifty auto index’s forward P/E to the 10-year mean. We prefer 2W OEMs where prospects of a cut are high," it said.
It has an 'add' rating on Maruti Suzuki with a target price of Rs 14,509. August 2025 volume momentum favours our 'add' rating on Bajaj Auto with a beat with a target price of Rs 9,944. "We have 'reduce' ratings on Hyundai and Tata Motors for missing expectations," with target prices of Rs 1,622 and Rs 642, respectively. It has ascribed 'hold' ratings for Eicher Motors and M&M.
Nirmal Bang Institutional Equities has observed a varied performance across the automobile sector, particularly noting a divergence in the two-wheeler (2W) and passenger vehicle (PV) original equipment manufacturers (OEMs) during Q1FY26. This mixed outcome stems from premiumisation trends and a recovery in export markets, while domestic demand remains tempered.
Two-wheeler OEMs reported robust export growth, although the domestic market for entry-level segments showed signs of moderation. In contrast, passenger vehicle sales experienced a decline domestically; however, strong export volumes provided some relief. Mahindra & Mahindra displayed notable revenue growth year-on-year, though Maruti Suzuki and Hyundai exhibited weaker volume numbers despite their resilient export performance, Nirmal Bang noted.
The commercial vehicle (CV) segment faced challenges with slight sales declines, although exports remained strong. Passenger CVs showed promising growth, whereas the goods segment experienced mild weakness due to monsoon disruptions and subdued infrastructure activities. Despite these challenges, volumes are projected to improve in the second half of FY26, supported by increased infrastructure activity, it said
The auto ancillary segment presented a mixed performance, impacted by global macroeconomic pressures. Specifically, the tyre segment faced weak results due to elevated rubber prices, unfavourable product mixes, and export challenges across companies, it added.
Looking ahead to Q2FY26, auto volume growth is expected to benefit from government initiatives such as Repo/CRR rate cuts and a proposed GST rate cut. Key factors influencing the sector include recent tax relief in two-wheelers, anticipated rural and urban recovery, and new E-2W launches. Additionally, new model launches in SUVs and EVs, coupled with increased e-commerce activities, are predicted to drive volumes in small commercial vehicles (SCVs).
Nirmal Bang recommends Mahindra & Mahindra in four-wheelers and Eicher Motors in two-wheelers, emphasising the growth potential in the middleweight segment. ASK Automotive, followed by Suprajit Engineering, remain favoured choices in the components sector.
Nirmal Bang has a ' buy' rating on M&M (Target Price: Rs 3,756), Eicher Motors (Target Price: Rs 6,382), Suprajit Engineering (Target Price: Rs 541), CEAT (Target Price: Rs 4,257) and ASK Automotive (Target Price: Rs 598). It has a 'sell' tag for TVS Motors (Target Price: Rs 2,972), Balkrishna Industries (Target Price: Rs 2,391) and Hyundai Motor India (Target Price: Rs 2,060).
It has suggested to 'hold' Maruti Suzuki (Target Price: Rs 14,502), Ashok Leyland (Target Price: Rs 140), Bajaj Auto (Target Price: Rs 9,179), Hero MotoCorp (Target Price: Rs 4,910), Sansera Engineering (Target Price: Rs 1,421) and Apollo Tyres (Target Price: Rs 498).
Early festive period influenced dispatches, deviating from the retail trend. 2W saw high YoY rise in dispatches versus flat retail sales. Cars saw better retail sales, said InCred Equities. "GST cut stimulus hopes have led to a spike in Nifty auto index’s forward P/E to the 10-year mean. We prefer 2W OEMs where prospects of a cut are high," it said.
It has an 'add' rating on Maruti Suzuki with a target price of Rs 14,509. August 2025 volume momentum favours our 'add' rating on Bajaj Auto with a beat with a target price of Rs 9,944. "We have 'reduce' ratings on Hyundai and Tata Motors for missing expectations," with target prices of Rs 1,622 and Rs 642, respectively. It has ascribed 'hold' ratings for Eicher Motors and M&M.