CLSA gives buying advice on Bajaj auto, Eicher, stocks may rise up to 36% | Zee Business

CLSA on Auto stocks: Due to geopolitical tension, the effect of rising commodity prices can be seen on the automobile sector and their stocks. The recent correction in the market has brought many auto stocks to attractive valuations. Global brokerage firm CLSA has said in its report released on the auto sector that the increasing input cost of companies can have an impact on the retail prices of the product. In such a situation, there may be a delay in the volume recovery of auto companies. Looking at the better outlook, the brokerage house has given buying advice on Bajaj Auto and Eicher Motors.

Bajaj Auto: Target 4248

CLSA has given buy advice on Bajaj Auto. Also, the target price per share has been kept at Rs 4248. The brokerage says that the cut in Hero Moto’s earnings is sharp. However, there is a positive outlook on premium motorcycles and the export segment. The price of Bajaj Auto on March 15 was Rs 3,450. In this way, investors can get a return of Rs 798 per share or about 23 per cent from the current price. The stock of Bajaj Auto has not gone up in the last one year. Investors have got negative returns in it.

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Eicher: Target 3127

CLSA has given ‘Buy’ rating on Eicher Motors. Along with this, the target price has been kept at Rs 3127 per share. The share price stood at Rs 2,305 on March 15. In this way, investors can get a return of Rs 822 per share or about 36 percent from the current price. If we look at the performance of the stock during the last one year, then investors have to bear negative returns of more than 13 per cent in this.

In its report on the auto sector, the brokerage house has said that the increasing input cost of companies can have an impact on the retail prices of the product. In such a situation, there may be a delay in the volume recovery of auto companies. At the same time, recovery is expected in the coming days in the export of companies.

(Disclaimer: The investment advice here is given by the brokerage house. These are not the views of Zee Business. Please consult your advisor before investing)

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