Auto Stocks in Spotlight: Anil Singhvi Sees Buying Opportunity in This Stock After Robust Sales
If you are looking for a buying opportunity in the auto space, you should definitely keep an eye on Mahindra & Mahindra Limited (M&M) due to its robust sales performance. Market expert Anil Singhvi has been positive about the company’s prospects, citing its strong sales figures, and is recommending buying M&M Futures for intraday trading.
M&M outperforms with strong sales growth
In February, M&M reported a 15% year-on-year (YoY) surge in total vehicle sales, reaching 83,702 units. The company’s utility vehicle segment, which includes its popular SUVs such as the XUV500 and the Bolero, led the charge, with a 19% YoY rise in sales, driven by strong demand in both domestic and export markets. Tractor sales also saw a notable 18% increase, with 25,527 units sold in February.
According to Vijay Nakra, President, Automotive Division, M&M’s momentum in the SUV segment is fueling its growth. He attributed the strong performance to the brand’s focus on SUVs, which are in high demand in the market. Hemant Sikka, President, Agricultural Equipment Division, also highlighted the factors contributing to the growth in tractor sales, pointing to a strong Kharif crop, a promising Rabi harvest, and government policies supporting farmers.
Passenger vehicle makers under pressure
While M&M stole the limelight, major passenger car manufacturers struggled. Maruti Suzuki, the largest carmaker in India, reported only marginal growth, with domestic sales of 1,60,791 units in February, barely higher than the year-ago period. Hyundai Motor India, another major player, witnessed a 5% decline in sales, selling 47,727 units. Tata Motors, too, saw a 9% drop in passenger vehicle sales, with 46,435 units sold.
Auto stocks face selling pressure despite market support
Auto stocks have been under pressure due to foreign capital outflows and a weakening rupee. The Nifty Auto index plummeted nearly 11% in February, significantly underperforming the Nifty 50, which fell around 6%. Heavyweights like Hero MotoCorp, Bajaj Auto, TVS Motor, Tata Motors, and Eicher Motors shed 11-16% last month.
Despite the market’s recent weakness, Singhvi remains optimistic about selective plays, particularly M&M, due to its robust sales figures. The overall trajectory of auto stocks will depend on economic recovery signals and broader market sentiment in the coming weeks.
In our view, M&M’s strong sales performance, combined with its diversified product portfolio and robust cash flow generation, make it an attractive choice for investors. With the company’s continued focus on SUVs and its efforts to increase its presence in the rural market, we expect it to continue to perform well in the future. If you are looking to invest in the auto space, M&M should definitely be on your radar.
Live News Daily is a trusted name in the digital news space, delivering accurate, timely, and in-depth reporting on a wide range of topics.