What is the story about?
Shares of Maruti Suzuki India Ltd. and Mahindra & Mahindra Ltd. fell up to 3% on Friday, August 29, despite these names making it to the key portfolios of firms like Morgan Stanley and that of Chris Wood of Jefferies.
Firstly, Morgan Stanley has added Maruti Suzuki India to both its Global Equity Markets and Asia Pacific Ex-Japan focus list.
The firm likes India's largest passenger car manufacturer, as it sees the stock to befit from the GST reforms in India. Over 50% of Maruti's product mix belongs to small cars and high operating leverage also keeps the stock in good stead.
Maruti Suzuki India's June quarter results were a beat on analyst expectations and Morgan Stanley's analyst sees double-digit revenue growth in financial
year 2026 for the company, supported by new model launches, a better product mix and rising share of exports.
On the flip side, Chris Wood of Jefferies in his GREED & fear note on Friday mentioned that he has made only one change to his India long-only equity portfolio.
As part of the change, the 4% weightage in Aditya Birla Real Estate will be removed, and will be replaced by a equal weightage in Mahindra & Mahindra. Jefferies has a price target of ₹4,200 on Mahindra and Mahindra, which is
the second-highest on the street for the stock.
Auto stocks like Maruti and Hero MotoCorp have rallied on hopes that the GST on automobiles could be rationalised lower, which in-turn, would boost demand ahead of the upcoming festive season.
Shares of Mahindra & Mahindra are trading 2.7% lower at ₹3,202.6, while those of Maruti Suzuki are trading little changed at ₹14,752, close to its all-time high of ₹14,895. The stock has gained 20% in the last one month, while M&M's shares have remained flat.
Firstly, Morgan Stanley has added Maruti Suzuki India to both its Global Equity Markets and Asia Pacific Ex-Japan focus list.
The firm likes India's largest passenger car manufacturer, as it sees the stock to befit from the GST reforms in India. Over 50% of Maruti's product mix belongs to small cars and high operating leverage also keeps the stock in good stead.
Maruti Suzuki India's June quarter results were a beat on analyst expectations and Morgan Stanley's analyst sees double-digit revenue growth in financial
On the flip side, Chris Wood of Jefferies in his GREED & fear note on Friday mentioned that he has made only one change to his India long-only equity portfolio.
As part of the change, the 4% weightage in Aditya Birla Real Estate will be removed, and will be replaced by a equal weightage in Mahindra & Mahindra. Jefferies has a price target of ₹4,200 on Mahindra and Mahindra, which is
Auto stocks like Maruti and Hero MotoCorp have rallied on hopes that the GST on automobiles could be rationalised lower, which in-turn, would boost demand ahead of the upcoming festive season.
Shares of Mahindra & Mahindra are trading 2.7% lower at ₹3,202.6, while those of Maruti Suzuki are trading little changed at ₹14,752, close to its all-time high of ₹14,895. The stock has gained 20% in the last one month, while M&M's shares have remained flat.
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