BNP Paribas has released its latest targets for major Indian automotive stocks, projecting significant potential upside for several key players in the sector. The foreign brokerage's analysis, detailed in an India electric vehicles note, indicates a positive outlook for companies like Mahindra & Mahindra, Eicher Motors, and Hero MotoCorp.
Indian Auto Stock Targets and Potential Upside
BNP Paribas suggests a target of Rs 4,130 for Mahindra & Mahindra (M&M), indicating a substantial 42 percent potential upside. Maruti Suzuki India Ltd also shows promise, with a target of Rs 15,130, suggesting a 27 percent upside.
For two-wheeler manufacturers, the brokerage set targets of Rs 8,750 for Eicher Motors, Rs 6,050 for Hero MotoCorp, and Rs 11,955 for Bajaj Auto, collectively hinting at a 13-18 percent potential upside for these stocks.
In contrast, Ashok Leyland and Tata Motors PV are expected to deliver "flattish returns," with Ashok Leyland's target at Rs 155, implying a mere 1 percent upside, and Tata Motors PV at Rs 290, suggesting a 5 percent upside.
Electric Vehicle Market Trends
The note also highlighted trends in the electric vehicle (EV) segment. Electric two-wheeler (E2W) registrations saw a 7 percent month-on-month (MoM) increase, though penetration declined by 190 basis points MoM to 9.6 percent. This trend is expected to continue into November due to the festive season.
In October, Hero MotoCorp expanded its E2W market share by 160 bps MoM to 13.4 percent, followed by TVS Motor India Ltd, which gained 90 bps to reach 27 percent. Conversely, market shares contracted for Bajaj Auto (140 bps to 21.9 percent), Ola Electric (105 bps to 5.4 percent), and Ather Energy (60 bps to 14.2 percent).
For electric passenger vehicles (EPV), registrations grew a modest 2 percent MoM, but penetration fell 90 bps MoM to 7.2 percent. Mahindra & Mahindra and MG gained market share in this segment, while Tata Motors PV and VinFast experienced losses.
Electric light commercial vehicle (eLCV) registrations grew 20 percent, outpacing ICE LCV sales (13 percent), with eLCV penetration modestly improving by 20 bps MoM to 5.5 percent.