Sharekhan Suggests Buying These Top 6 Auto & Auto Ancillary Stocks In September

Indian stock markets turn green today, on strong global cues. Nifty was up to 17,751.15 points, gained by 0.72%, at the time of writing. Reputed brokerage firm Sharekhan has recommended these six auto and auto ancillary stocks to buy for high returns.

Exide Industries

The current market price of the company is Rs. 160/ share, and Sharekhan has estimated a target price for the stock at Rs. 183/share, and given buy rating. In the last 1 month it has given 7.15% returns, and in the last 6 months it has given 16.76% returns. Its 52-week high market price is Rs. 191.90, and 52-week low market price is Rs. 130.25. It is a mid cap stock with a market capitalization of Rs. 14,407 crore. The company is offering a high dividend yield of 1.18%. The company is increasing its exports and also initiating footprints into new markets.

Apollo Tyres

The current market price of the company is Rs. 253/ share, and Sharekhan has estimated a target price for the stock at Rs. 303/share, and given buy rating. In the last 1 month it has given 20.58% returns, and in the last 6 months it has surged by 60.89%. Its 52-week high market price is Rs. 277.65, and 52-week low market price is Rs. 165.25. It is a mid cap stock with a market capitalization of Rs. 17,544 crore. The company is offering a high dividend yield of 1.18%. The company is traded at a near 52-week high level, after Morgan Stanley initiated an 'overweight' rating for the stock. Hence, in the past 5 days, it has sharply gained by 8.83%.

Gabriel India

The current market price of the company is Rs. 166/ share, and Sharekhan has estimated a target price for the stock at Rs. 169/share, and given buy rating. In the last 1 month it has given 17.69% returns, and in the last 6 months it has given 50.27% returns. Its 52-week high market price is Rs. 171.90, and 52-week low market price is Rs. 102. It is a small cap stock with a market capitalization of Rs. 2,418 crore. The company is offering a high dividend yield of 0.92%.

GNA Axles

The current market price of the company is Rs. 724/ share, and Sharekhan has estimated a target price for the stock at Rs. 800/share, and given buy rating. In the last 1 month it has given 19.25% returns, and in the last 6 months it has given 58.81% returns. Its 52-week high market price is Rs. 1,111.55, and 52-week low market price is Rs. 440.05. It is a small cap stock with a market capitalization of Rs. 1,631 crore. The company is offering a high dividend yield of 0.66%.

Amara Raja Batteries

The current market price of the company is Rs. 510/ share, and Sharekhan has estimated a target price for the stock at Rs. 629/share, and given buy rating. In the last 1 month it has given 4.82% returns, and in the last 6 months it has fallen by 4.04%. Its 52-week high market price is Rs. 781.60, and 52-week low market price is Rs. 438.05. It is a mid cap stock with a market capitalization of Rs. 9,134 crore. The company is offering a high dividend yield of 0.84%.

Ashok Leyland

The current market price of the company is Rs. 164/ share, and Sharekhan has estimated a target price for the stock at Rs. 181/share, and given buy rating. In the last 1 month it has given 12.33% returns, and in the last 6 months it has surged by 64.25%. Its 52-week high market price is Rs. 169.45, and 52-week low market price is Rs. 93.20. It is a large cap stock with a market capitalization of Rs. 47,863 crore. The company is offering a high dividend yield of 0.61%. Ashok Leyland dispatched 14,121 units (up 50.9% y-o-y) in August 2022.

Return comparison from stocks

In this table the Current Market Price (CMP) and the Target Price (TP) of the recommended stocks have been mentioned.

Company	CMP	Target Price
Exide Industries	Rs. 160	Rs. 183
Gabriel India	Rs. 166	Rs. 169
GNA Axles	Rs. 724	Rs. 800
Amara Raja Batteries	Rs. 510	Rs. 629
Apollo Tyres	Rs. 253	Rs. 303
Ashok Leyland	Rs. 164	Rs. 181

Recommendation by Sharekhan

On the stocks, Sharekhan stated, "We expect a recovery in the CV segment to continue over the next few years, driven by improved economic activities, an affordable interest rate regime and better financing availability. The bus and three-wheeler segments are expected to improve gradually, as corporate offices and educational institutions open. Robust demand, easing supply constraints, and dropping commodity prices are likely to provide relief to auto original equipment manufacturers (OEMs) and ancillary companies going forward. We stay Positive on the sector."

Disclaimer

The above stocks were picked from the brokerage report of Sharekhan. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.