Today we will be looking at some of the hottest Nifty Auto Stocks on the market that could be worth adding to your investment portfolio. And to help us make the most informed decisions, we'll be using the powerful investment tool - NiveskGPT.
NiveskGPT is an excellent personal investment advisor that gives you timely advice and high-quality recommendations in the stock market. With the right data, NiveskGPT helps you make smart investment decisions that suit your financial needs.
Now, let's take a closer look at each of the five stocks that we've picked out for you today, including their benefits when using NiveskGPT.
Following are the TOP 5 Nifty Auto Stock which you can buy today!-
STOCK 1: ASHOKLEY
Based on the given information, the current view on Ashok Leyland (ASHOKLEY) is a 'BUY'. The moving averages (MA) 20, 50, and 200 are all showing a positive trend, with the current stock price (150.4) above the MA 20 and MA 50, indicating a bullish momentum.
In terms of fundamental analysis, the company's sales and net profits for the latest financial year have been reported as 38397.0 and 740.0 respectively, while the market capitalization stands at 41399.0. Although the P/E (Price to Earnings) Ratio of 55.94 seems high, it can be attributed to the current market scenario and the company's future growth prospects. However, the asset turnover ratio of 0.84 and the leverage of 6.37 should also be closely monitored for any unfavorable changes in the future.
The ROE (Return on Equity) of 10.34% indicates that the company is generating a decent return on the shareholder's investments. The normal equity of 12919.93 also provides some cushion in case of any unforeseen events impacting the company's operations.
Finally, based on the given data, the stock might be slightly overvalued, which needs to be taken into consideration when making any investment decisions.
STOCK 2: TATAMOTORS
Based on the given data, we have a favorable view on TATAMOTORS. The stock is currently trading above its 20, 50 and 200-day moving averages, which indicates a bullish trend in the short, medium, and long term. The risk-reward is favorable with the stock moving in the right direction relative to moving averages.
With regards to key financials, TATAMOTORS has a healthy Asset Turnover Ratio of 1.01, which indicates that the company is efficient in using assets to generate revenue. However, the company's Net Profit is negative and its ROE (Return on Equity) is also negative at -19.46%, which indicates that the company is not earning enough profits on shareholders' investments. The P/E Ratio of -29.78 indicates that the stock is undervalued.
Considering the future scope of the company, TATAMOTORS has been working on electric vehicles and smart mobility solutions which can contribute to its growth in the long run. Additionally, the company may benefit from the increasing demand for commercial and passenger vehicles in India as the country continues to develop and expand.
Overall, based on the given data, we recommend a BUY on TATAMOTORS as the risk-reward is favorable, the stock is undervalued, and the company has potential for growth in the long term.
STOCK 3: TVSMOTOR
Based on the key financials and technical analysis provided, our view on TVSMOTOR is a 'BUY'. The stock has been moving in the right direction relative to moving averages, and the risk-reward seems favorable.
The Moving average 20 stands at 1212.91, which is well above the current stock price of 1272.9, indicating a bullish trend. The Moving Average 50 is also at 1136.99, which is higher than the current stock price, reinforcing the bullish trend. Moreover, the stock has been performing well above the Long term Moving Average 200 (1069.34), further supporting our bullish view.
On the financial side, the company's SALES are 30528.0, and the NET PROFIT is 1248.0, which reflects a healthy revenue and profit growth. The company's valuation is slightly on the higher side, with a high P/E ratio of 41.29, indicating that the stock may be OverValued.
The company's ROE is 24.62%, which is a good indicator of the company's efficiency in generating profits from its shareholders' investments. The Asset Turnover Ratio of 0.98 is relatively stable, but the leverage of 6.14 indicates that the company has a high proportion of debt compared to equity.
Furthermore, based on the analysis of the technical data and the financial ratios, we believe that the future scope of TVSMOTOR is positive, with the company well-positioned for growth. Therefore, we recommend buying TVSMOTOR fearlessly as the trend stays favorable.
STOCK 4: BAJAJ-AUTO
Our fourth pick for the day is BAJAJ-AUTO . Based on the information provided, our view on BAJAJ-AUTO is that it is a good stock to buy at its current price. The risk-reward is favorable, and the stock is moving in the right direction relative to its moving averages. The moving average 20 is 4494.98, which is above the current stock price of 4517.6, implying a positive short-term trend. The moving average 50 of 4199.81 is also above the current stock price, indicating a positive medium-term trend. The moving average 200 of 3858.89 is above the 50 and 20 moving averages, indicating a strong long-term trend.
Looking at the financial data, the company has a healthy financial position, with good sales and net profit figures. The company has a strong asset turnover ratio of 1.09, indicating efficient use of its assets to generate sales. The company has a reasonable P/E ratio of 20.04, which is not too high or too low. The ROE of 21.65% is impressive, indicating that the company is efficiently using its shareholders' funds to generate profits. The leverage ratio of 1.25 indicates that the company has moderate debt levels compared to equity.
Overall, considering the positive trend of the stock and the good financial fundamentals of the company, we recommend a "BUY" call on BAJAJ-AUTO. Furthermore, based on the valuation, the stock appears to be undervalued, providing an opportunity for potential long-term gains.
STOCK 5: MARUTI
Last but definitely not least, is MARUTI . Based on the key financials and technical analysis that you have provided, Maruti appears to be a solid company with good financial health. The company has been consistently profitable, with a strong market capitalization and decent asset turnover ratio. However, the P/E ratio seems to be on the higher side, indicating that the stock may be overvalued.
From a technical perspective, the stock is currently moving upwards with a favorable trend relative to the moving averages. This is a good indication for investors to consider buying the stock, but it is important to keep an eye on the trend. As long as the trend stays favorable, you can buy the stock without any fear.
Considering the overall picture, I would recommend a BUY on Maruti, but taking a cautious approach due to the high valuation.
That's it for today's "5 Stocks To Watch" rundown. You're never too young, or old, to start understanding the stock market. Niveshak GPT is super easy and incredibly helpful. Just login, type your question related to the stock market, and there it is! Niveshak GPT will help you with the answers. It's like having your personal stock market advisor, available 24/7!
So, what are you waiting for? Get started with Niveshak GPT today, and make some smart investment choices.
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Note:-Investing in the stock market always carries risk. Always do your own research and consider seeking advice from a certified financial advisor.