The most awaited festival of India — Diwali — is now round the corner, we are just a week away from the auspicious carnival of lights. This is the time when most of the households begun to clean up the waste from the home and plan to purchase something new. Often families think of buying a new car, bike, television, appliances, home decors, etc. But think of an instance of buying something other than the aforementioned traditional shopping list and that too will grow your wealth over a period of time. Think of investing this Diwali but not in the most conventional assets such as gold or property. We bring you three of the top stocks of automobile companies that you can buy this Diwali which may help to grow your money.
Maruti Suzuki – Kotak Securities
Shares of Maruti Suzuki has returned around 47% in the year 2017 to its current market price of Rs 7,830. Kotak Securities has recommended it to buy with a further upside of around 15%. The stock price of Maruti Suzuki may shoot up to Rs 9,061 in coming days. Maruti Suzuki (India), is the largest passenger car company in India, is a subsidiary of Suzuki Motor Corporation of Japan. The company was formed as a government owned company (Maruti Udyog Limited), it entered into a JV with Suzuki Motor Corporation. Over the years the company has been one the most successful player in the Indian car market. Maruti Suzuki volumes to grow at a strong pace aided by expected, recovery in rural areas, continued robust demand for recently launched products (Baleno, Brezza, Ignis), expansion of Nexa network and demand in favor of petrol run vehicle, according to Kotak Securities.
Hero MotoCorp – Indiabulls Ventures
Shares of Hero MotoCorp have risen about 22% from January 2017 so far to the current market price of 3,695. The research and brokerage firm Indiabulls Ventures has recommended it to buy with an upside of 27% to a target price of Rs 4,707. Hero MotoCorp is a leading two wheeler manufacturer with a global presence and the it is the market leader in the domestic motorcycle segment. HMCL has five manufacturing facilities located in India, and one each in Colombia and Bangladesh. Good monsoon would lead to successful harvest and government’s renewed focus on spurring rural income over the coming years is likely to provide a major boost to the automobile space and more likely to Hero MotoCorp due to its larger market share in rural areas, according to Indiabulls Ventures.
Mahindra & Mahindra – Sharekhan
Shares of Mahindra & Mahindra has returned about 10% in the nine-and-half-month period of 2017 so far. The research and brokerage firm Sharekhan has recommended it to buy this Diwali. Mahindra & Mahindra is the only Indian automobile company having a track record of manufacturing passenger electric vehicles (EVs). Given the government’s push for EVs and M&M’s planned new launches in this space, it will clearly enjoy a first‐mover advantage and significantly benefit from the shift to EVs, according to Sharekhan.