Brokerage firm PL Capital has released its latest sector note on Indian automakers, revising ratings and target prices for key players following a review of May 2026 auto dispatch data. The report highlights sustained volume growth across most major segments, leading to updated outlooks for the industry.
Overall, PL Capital assigned an 'Equal Weight' rating to the automotive sector. The firm observed stable growth in the two-wheeler segment, noting that OEMs are actively increasing production capacities to meet sustained retail demand while addressing labor shortages and supply chain disruptions. Conversely, the commercial vehicle (CV) space is anticipated to experience short-to-medium-term moderation due to elevated fuel and raw material costs, although long-term drivers like infrastructure spending remain robust.
Individual Stock Ratings and Target Prices
Mahindra & Mahindra (M&M)
M&M emerged as the sole stock to receive a 'Buy' rating from PL Capital, with a target price set at Rs 3,900. The Mahindra Group stock was identified as a standout performer in the current market assessment.
Maruti Suzuki India Ltd
PL Capital maintained an 'Accumulate' rating for Maruti Suzuki. The brokerage firm set a target price of Rs 14,550 for the automotive giant, reflecting its continued positive outlook.
Hero MotoCorp Ltd
Riding on strong performance, Hero MotoCorp secured an 'Accumulate' rating. The company demonstrated double-digit growth across its 125cc deluxe, premium motorcycle, and scooter segments. Its target price was set at Rs 6,066.
TVS Motor Company Ltd
TVS Motor also received an 'Accumulate' rating from PL Capital, with a target price of Rs 3,950. The brokerage noted significant overall volume increases, with sales growing +31.4% year-over-year to 566,600 units. Two-wheeler volumes specifically rose +30.5% year-over-year, supported by a 24.3% increase in domestic volumes and a strong 48.3% surge in exports.
Eicher Motors Ltd
Despite facing some capacity constraints that impacted its international business and 350cc+ motorcycle segment, Eicher Motors saw steady domestic sales for its Royal Enfield brand. PL Capital assigned an 'Accumulate' rating, setting a target price of Rs 7,580.
Bajaj Auto Ltd
Bajaj Auto was assigned a 'Hold' rating by the brokerage, with a target price of Rs 10,400. The company reported overall sales growth of +19.9% year-over-year to 461,300 units. Two-wheeler volumes increased +18.3% year-over-year, driven by a 9.5% rise in domestic volumes and a robust 30.3% growth in exports.
Disclaimer: This news report provides stock market information for general informational purposes only and should not be considered investment advice. Readers are strongly encouraged to consult with a qualified financial advisor before making any investment decisions.