GST rate cut: 4 auto stocks which Nomura believes have biggest upside potential
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A potential cut in Goods and Services Tax (GST) on automobiles could trigger a strong rally in Indian auto stocks, with Mahindra & Mahindra, Maruti Suzuki, Ashok Leyland, and TVS Motor emerging as the biggest beneficiaries, according to brokerage Nomura. “Our scenario analysis considers three possible outcomes in the event of a GST reduction, with varying degrees of demand impact,” the brokerage said. “We see scope for upside across all three scenarios from current levels. Based on this analysis, the stocks with the biggest upside potential are Mahindra & Mahindra (Buy), Maruti Suzuki (Neutral), Ashok Leyland (Buy), and TVS Motor (Buy).” Target prices and upside Nomura has a target price of Rs 3,736 on Mahindra & Mahindra, implying about 11% upside from the current Rs 3,354. For Maruti Suzuki, the brokerage set a target of Rs 13,113, about 8% lower than the stock’s current Rs 14,250, though it noted strong upside potential if ...