Archive · 21 Nov 2025
India's Auto Sector: Strong Q2 Performance, Upbeat Outlook
After a strong second quarter, an Indian brokerage firm is optimistic about the country's automobile sector.
They suggest buying stocks of Mahindra & Mahindra, Ashok Leyland, and Bajaj Auto, expecting up to 19% growth.
The firm credits this to improved rural sentiment, a good monsoon, and GST rationalization boosting consumption.
Choice Institutional Equities maintains positive outlook on Indian automobile sector
Mahindra & Mahindra (M&M), Ashok Leyland, and Bajaj Auto recommended for up to 19% upside
M&M's revenue growth driven by segment mix and pricing power
Ashok Leyland's premium product launches and MHCV leadership highlighted
Bajaj Auto's Chetak electric scooter production normalization noted
- Who
- Choice Institutional Equities, Mahindra & Mahindra, Ashok Leyland, Bajaj Auto
- What
- Positive outlook and stock recommendations for Indian automobile sector
- When
- Second quarter of FY26, ongoing
- Where
- India
- Why
- Resilient sector performance driven by rural sentiment, monsoon, and GST rationalization
Bullish View
Cautious View
Stock Recommendations
Bullish View
Buy M&M, Ashok Leyland, Bajaj Auto (up to 19% upside)
Cautious View
Add Hero MotoCorp, Reduce Maruti Suzuki, Eicher Motors, TVS Motor Company
- M&M Target Price
- Rs 4,450 (19% upside)
- Ashok Leyland Target Price
- Rs 161
- Bajaj Auto Target Price
- Rs 9,975
- GST Rate Cut Effect
- Boosted consumption and vehicle accessibility
Sources
Passenger vehicle industry to grow in double digits in H2FY26: Tata Motors' Shailesh Chandra
Why proposal for tighter emission norms has triggered a small vs big car debate
Buy M&M, Bajaj Auto, Ashok Leyland for up to 19% upside, says Choice; check target prices
