Shares of Maruti Suzuki (India), Mahindra & Mahindra (M&M) and TVS Motor Company gained on Monday as the automakers disclosed their monthly sales data for November 2024.

Domestic brokerage Motilal Oswal said that the dispatches declined sharply month-on-month (m-o-m) in the month under-review across all segments in line with its expectations, following the festivities in October. Motilal’s top picks include Maruti Suzuki, M&M and Hyundai.

Nuvama Institutional Equities, in its report on November 28, 2024, reckoned that TVS Motor shall outpace peers in the two-wheelers segment. M&M and TVS Motor were top picks by the brokerage. 

Commenting on the sectoral performance, Mumuksh Mandlesha, Research Analyst, Anand Rathi Institutional Equities, stated that the wholesale volumes recorded a slight decline y-o-y below the estimates, despite strong retail growth, owing to the high festival base of last year. Meanwhile, PVs grew slightly (above estimates) on inventory build. CV volumes grew marginally on a favourable base, the analyst added.

Maruti Suzuki — which recorded 10 per cent y-o-y increase in total sales at 1,81,531 units in November 2024 — emerged as brokerage Motilal’s top pick among auto original equipment manufacturers (OEMs) as it continues to be a play on the rural recovery with an attractive valuation. It added that in the passenger vehicles (PVs) segment, the automaker’s dispatches exceed its expectations. 

Maruti shares rose 2 per cent on Monday, hitting an intra-day high of ₹11,300 on the NSE from the previous close of ₹11,074.20.

The stock ended positive by 1.41 per cent at ₹11,230.

Motilal Oswal is also positive on M&M for its healthy demand trend in SUVs and recovery in tractors. Its total sales increased 12 per cent year-on-year to 79,083 units in November. The brokerage likes Hyundai as it appears well-aligned to benefit from the industry trends toward utility vehicles (UVs). 

M&M shares closed at ₹3,019.40, up 1.80 per cent, after hitting intraday high of ₹3,026.25 on the NSE.

Analysts of Yes Securities in their latest report maintained buy call on M&M at a target price of ₹3,632. They mentioned that the company’s latest launches BE 6e and XEV9e will not only accelerate EV adoption, but also establish M&M as leading E PV brand. Elara Securities had also reiterated its accumulate rating on the stock at a target price of ₹3,457.

TVS Motor Company recorded 10 per cent sales growth in November. The company’s stock closed 1.99 per cent higher at ₹2,482.90, leading gains of Nifty auto stocks, hitting an intraday high of ₹2,496.50 on the NSE.

In addition, Bajaj Auto posted 5 per cent growth in total sales and Ashok Leyland’s total wholesales grew 1 per cent y-o-y.

Shares of Bajaj Auto closed at ₹9,119.50 on the NSE, up 0.95 per cent, and Ashok Leyland stock ended 1.03 per cent lower at ₹229.70. Tata Motors and Hero Motocorp stocks closed flat at ₹790.15 and ₹4,747 on the NSE. Nifty auto index closed positive by 0.99 per cent at 23,599.60.

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