PremiumStocks to buy today: Amid choppy trade with continuous weak bias for four straight sessions, stocks market experts have recommend investors to take advantage of this market scenario and pick shares that are available at attractive valuations. They said that auto stocks have remained under pressure for some time due to second wave of Covid-19 and one can find quality stocks at discounted price in this sector. They said that if someone is looking to buy atuo shares, then he or she can look at Maruti Suzuki, Hero MotoCorp and Motherson Sumi Systems shares when the market opens on Friday.
Maruti Suzuki
Highlighting the fundamentals favouring Maruti Suzuki shares Arijit Malakar, Head of Research at Ashika Stock Broking said, "Maruti Suzuki India has ended FY21 on a positive note amid all the uncertainties due to the pandemic. A preference for personal mobility and first-time buyers are likely to drive higher volumes. Moreover, with a good crop production and expectations of a normal monsoon, the sentiment will remain positive in rural areas, which should benefit Maruti as it has a strong presence in the rural segment. Further, auto OEMs are optimistic on the festive demand this year and will ramp up the production earlier compared to last year."
On his suggestion to the investors in regard to Maruti Suzuki share price Sandeep Matta, founder at TRADEIT Investment Advisors said, "The counter has rallied in past few days and has potential to reach up to the ₹7900 levels. An investor can hold the counter with the stop loss of ₹7280 on closing basis."
Maruti Suzuki shares at NSE had close price of ₹7584.55 on Thursday.
Hero MotoCorp
Speaking on Hero MotoCorp share price outlook Arijit Malakar said, "Hero Motocorp is the leading domestic two-wheeler player with a market share of around 38 per cent, especially in economy and executive motorcycle segment. The company has a strong rural presence thus any revival in rural areas because of the good monsoon will boost its revenue growth in coming quarters. Besides, company’s foray into premium bike segment and electric two wheeler segment are the key long term growth drivers. Further, in this pandemic the personal mobility is getting more preference and Hero Motocorp is best placed to capitalize on this opportunity."
Sharing the investment strategy in regard to Hero MotoCorp shares Sandeep Matta of TRADEIT Investment Advisors said, "The stock has not yet rallied and it is available at the PE of around 20. On the basis of strong fundamentals and low valuations, we are bullish on this counter for the target of ₹3300 suggesting stop loss of ₹2750 on closing basis."
Motherson Sumi Systems
Advising investors to wait for some correction in the counter Sandeep Matta said, "Motherson Sumi is one of the world's leading, specialized automotive component manufacturing companies for OEMs. The stock has outperformed in last few months on the back of strong order book, margin expansion, focus on debt reduction. The strong demand revival coupled with cyclical recovery in core businesses assures revenue visibility for the company. Fundamentally we are optimistic on long term growth prospects of the company. However, at current valuation all near term positives are priced in and therefore would advise to wait for some meaningful correction to make fresh entry in this counter." Matta advised investors to keep an eye on this counter as profit-booking in the counter is strongly awaited.
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