Archive · 21 Jul 2026
Cheapest Auto Stocks: Tata, Mahindra, Hero
India's auto industry had a strong year with record sales across all vehicle categories.
Three companies, Tata Motors Passenger Vehicles, Mahindra & Mahindra, and Hero MotoCorp, are among the cheapest auto stocks based on their EV/EBITDA ratios.
Tata Motors faced challenges with its Jaguar Land Rover division but saw growth in domestic sales and electric vehicles.
Mahindra & Mahindra reported strong revenue and profit growth, with plans to expand capacity and launch new products.
Hero MotoCorp had its highest-ever revenue and profit, with growth in scooters, electric vehicles, and premium motorcycles.
Each company has its own set of risks and opportunities, and investors should consider these factors before making investment decisions.
India produced 34.7 million vehicles in FY26, with record sales across all major vehicle categories.
Tata Motors Passenger Vehicles trades at an EV/EBITDA ratio of 6.9x, with challenges in JLR but strong domestic growth.
Mahindra & Mahindra reported 25% revenue growth and plans to expand capacity and launch new products.
Hero MotoCorp had its highest-ever revenue and profit, with growth in scooters, electric vehicles, and premium motorcycles.
The valuation discount for these stocks reflects different concerns, including weak overseas operations and heavy spending on new capacity and electric vehicles.
- Who
- Tata Motors Passenger Vehicles, Mahindra & Mahindra, Hero MotoCorp
- What
- Analysis of the cheapest auto stocks based on EV/EBITDA ratios
- When
- FY26
- Where
- India
- Why
- To identify undervalued auto stocks and understand the factors influencing their valuation
Optimistic View
Pessimistic View
Valuation Discount
Optimistic View
The low EV/EBITDA ratios indicate undervaluation and potential for significant upside.
Pessimistic View
The low EV/EBITDA ratios reflect genuine concerns and risks, not necessarily undervaluation.
EV Growth
Optimistic View
Strong EV sales and market share gains indicate a promising future for electric vehicles.
Pessimistic View
EV businesses are still in investment phases with losses, posing risks to overall profitability.
Global Operations
Optimistic View
Expansion into international markets presents growth opportunities.
Pessimistic View
Global operations face risks from tariffs, geopolitical tensions, and weak demand in certain regions.
- Total Vehicles Produced in FY26
- 34.7 million
- Passenger Vehicle Sales Growth
- 7.9%
- Two-Wheeler Sales Growth
- 10.7%
- Commercial Vehicle Sales Growth
- 12.6%
- Three-Wheeler Sales Growth
- 12.8%
- Passenger Vehicle Exports Growth
- 17.5%
- Two-Wheeler Exports Growth
- 23.4%