M&M, Bajaj Auto, Maruti, TVS Motor, Hero MotoCorp: Buy, sell or hold? - Target prices

Auto stocks: According to a latest sector note by brokerage firm PL Capital, auto dispatches for May 2026 showcased sustained volume growth across most major segments, prompting the brokerage to revise ratings and target prices for the top automakers. 

While assigning an overall ‘Equal Weight’ rating to the sector. PL Capital highlighted that while 2Ws saw stable growth as most OEMs are in the midst of increasing capacities to meet the sustained retail demand, while mitigating labor shortages, and disruptions in logistics and supply chain.

PL Capital also noted that the CV space might see short-to-medium-term moderation due to elevated fuel and raw material costs, though long-term drivers like infrastructure spending remain intact.

Auto stock target prices

Mahindra & Mahindra Ltd (M&M): The Mahindra Group stock emerged as the standout, securing the only ‘Buy’ rating on the list with a target price of Rs 3,900. 

Maruti Suzuki India Ltd: PL Capital maintained an ‘Accumulate’ rating for Maruti Suzuki with a target price of Rs 14,550. While Hero MotoCorp Ltd: Riding on double-digit growth in its 125cc deluxe, premium motorcycle, and scooter segments, Hero MotoCorp has an ‘Accumulate’ rating with a target price of Rs 6,066. 

TVS Motor Company Ltd: PL Capital rated TVS Motor as ‘Accumulate’ with a target price of Rs 3,950.  “Overall volumes increased +31.4% YoY to 566.6k units. 2Ws grew +30.5% YoY to 543.1k units with domestic volumes increasing +24.3% YoY to 384.6k units, and strong exports (+48.3% YoY),” the brokerage noted.

Eicher Motors Ltd: Despite facing capacity constraints that slightly dented its international business and 350cc+ motorcycle segment, Eicher Motors saw its Royal Enfield brand posted steady domestic sales. PL Capital assigned an ‘Accumulate’ rating to Eicher Motors, setting a target price of Rs 7,580.  

Bajaj Auto Ltd: The brokerage assigned Bajaj Auto a ‘Hold’ rating with a target price of Rs 10,400. “Overall sales grew +19.9% YoY to 461.3k units. 2W volumes rose +18.3% YoY to 393.2k units: domestic volumes grew +9.5% (209.5k units) and exports grew +30.3% YoY (183.7k units),” it said.