Ola Electric, Olectra Greentech, TVS Motor, Bajaj Auto & Exide jump up to 8% today

Shares of Ola Electric Mobility Ltd, Olectra Greentech Ltd, TVS Motor Company Ltd, Bajaj Auto Ltd and Exide Industries were trading higher in Saturday's special trading session as the Union Budget 2025 presentation started.

Ola Electric surged 7.96 per cent to hit a high of Rs 80.75 while Olectra moved up 3.50 per cent to Rs 1,518 level. Exide Industries, Bajaj Auto and TVS Motor rose 1.12 per cent, 0.46 per cent and 0.47 per cent, respectively.

HSBC has upgraded TVS Motor stock to 'Buy' from 'Hold' and downgraded Ola Electric to 'Hold' from 'Buy'. The foreign brokerage retained its 'Buy' rating on Bajaj Auto. It said valuations look relatively undemanding now post the recent correction in two-wheelers. It sees limited earnings downside post EPS revisions in the December quarter.

"2W growth has moderated in the recent months, though we still expect the industry to grow in high-single digits in FY26. The past 10-year CAGR for the industry is still less than 3 per cent and lower than most other auto segments. Electrification has been rather slow despite significant incentives by the government. Positively, rural is recovering and so is the export market," HSBC said.

HSBC said TVS Motor arguably has the most established R&D capacity amongst the two-wheeler OEMs. The company has been able to maintain its share in the domestic market and has gained decent traction in EVs as well, it said.

"We see this as a positive back-drop for TVS in the medium term. Finally, TVS continues to gain traction in export markets as well. The stock has corrected by 25 per cent from the top and is now valued at 34x FY26e EPS. Admittedly, losses in subsidiaries like Norton remain a worry for us, but standalone margins have high visibility, thanks to PLI accruals from 4Q as well," the brokerage stated.

At the industry level ICE scooter share has been stable at 31 per cent since FY21, while EV scooters have taken market share mostly from economy MCs (75-110cc), especially urban economy MC sales. This reduces the ICE scooter cannibalisation risks for TVS Motor, HSBC added while suggesting a target price of Rs 2,800 on the stock.