Two-wheelers likely to report double-digit YoY growth in April sales. Which stocks to buy

Domestic brokerage Anand Rathi Securities anticipates strong double-digit YoY growth for two-wheeler wholesale volumes in April, driven by good demand — as retail volumes were up over 30% --- and a favourable base. While Hero MotoCorp, TVS and Bajaj are likely to witness good volume growth in the 2-wheeler segment, M&M and Tata might post volume growth in the PV and CV segments, respectively.

PV volumes are likely to have grown at a healthy pace led by robust retail volumes (up over 10%). Meanwhile, CVs and tractors are expected to be broadly flattish, but better than the previous month, owing to the fading of the high base.

Below is a list of company-wise volume expectations as per Anand Rathi:

“We are positive on the auto sector. Our preferred OEM picks are Hero MotoCorp, TVS Motors and Escorts Kubota,” said Anand Rathi.

Hero MotoCorp

Hero MotoCorp is expected to post a 10% YoY increase in terms of volume growth to 5.15 lakh units in April 2024. The volumes stood at 3.96 lakh in April 2023.

Hero MotoCorp shares were up 2.2% on the BSE at Rs 4,555 on Tuesday.

TVS Motor

In April 2023, TVS Motor reported volumes of 3.06 lakh. It is likely to show 21% growth YoY at 3.7 lakh units in April 2024.

TVS Motor traded nearly 2% higher at Rs 2,074.55 on the BSE.

Escorts Kubota

Escorts remains a top pick for the brokerage, though the company is expected to post a decline of 2% YoY in volume growth. The company sold 7,600 units in April 2023, while only 7,400 units are likely to have been sold in April 2024.

Trading 3% higher on the BSE, the current market price of Escorts Kubota is Rs 3,384.7.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)