Sharekhan’s Top 6 “Stock Picks” From The Auto Ancillary Space
Shares To Buy
Sharekhan has recommended buying stocks from the auto and auto ancillary space in its latest report. Here are the brokerages top 6 stock picks from the sector.
According to Sharekhan, its top picks from the space including the likes of Amar Raja Batteries, Bosch Greaves Cotton, Lumax Auto Technologies, Schaeffler India and Gabriel India.
According to the brokerage Amararaja Batteries has come out with a healthy set of numbers in Q3FY2023. “Although revenue missed our estimates by 5.6%, EBIDTA and PAT were 7.6% and 10.9% ahead of our estimates, respectively. The correction in raw material cost has benefitted the company in Q3FY2023. Hence, its gross margin has expanded by 360 bps y-oy and 290 bps q-o-q to 33.4%. The company is aiming to aggressively execute its EV project, as it has already planned to set up Gigafactory. Maintain Buy rating on the stock,” the brokerage has said,
According to Sharekhan n Q3FY23, Bosch reported operating performance in line with estimates as reported EBITDA was mere 1.6% below estimates and EBITDA margin was 20 bps higher than expectations. “Revenue came flat on qoq basis but AEBITDA margin expanded by 80 bps qoq to 13.5%. Implementation of new emission norms is expected to boost its content per vehicles which in our view would drive its profitability going forward. The company’s strong brand positioning, focus on technology, and electrification of vehicles will enable its high growth visibility. Maintain Buy rating,” the brokerage has said.
Buy the Greaves Cotton stock
Another stock where Sharekhan has a “buy” call is the stock of Greaves Cotton. According to Sharekhan, the muted performance in Q3FY2023 was off, due to regulatory issues pertaining to electric battery management system. “The performance is expected to improve in Q4FY23 on qoq basis due to the expected recovery in EV business. |Further the acquisition of high-margin Excel’s business would be margin accretive on consolidation. Maintain a Buy rating on the stock,” the brokerage has said.
Disclaimer
The stock have been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.