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Ashok Leyland to Escorts — experts give ‘buy’ tag to these 5 auto stocks – Mint

Stocks to buy today: On account of Covid-19 restrictions forcing auto manufacturing units to shut down, share prices of auto…

By Reader Post , in Business , at June 9, 2021

Stocks to buy today: On account of Covid-19 restrictions forcing auto manufacturing units to shut down, share prices of auto companies witnessed heavy selloff in the last one half month. However, when the unlock activities and vaccination drive are in accelerated mode, market experts have advised investors to look at the auto sector stocks as they are available at discounted price these days. They said that Ashok Leyland, Hero MotoCopr, Force Motor, HBL Power and Escorts are some of the auto shares that one can buy when the stock market opens today.

Speaking on the reason to buy auto stocks Ravi Singhal, Vice Chairman at GCL Securities said, “Due to Covid-19 restrictions, majority of the manufacturers had to shut down their units. Auto companies too had to shut down manufacturing in some of its major units that triggered heavy selloff. However, when the unlock activities and vaccination drive is fast catching, these discounted auto stocks can be bought for medium to long-term.”

Asked about the auto shares that one can buy today Ravi Singhal of GCL Securities said that Ashok Leyland, Escorts, Hero MotoCorp, Force Motor and HBL Power are some of the major shares that one can add in one’s portfolio.

1] Escorts: Speaking on Escorts share price target and fundamentals that may support rally in the stock Sandeep Matta, Founder at TRADEIT Investment Advisor said, “Monsoon & agriculture plan and FII’s favorite counter from past few years with outstanding fundamentals where business is delivering over 20% ROE (Return on Equity) and available at PE lower than 20 indicated rally in the counter. The ideal price to buy Escorts shares is around 1130 levels, however, it can be accumulated at current market price and add more at the lower levels with the Stop loss of 1060 on closing basis for the target of 1320 to 1445 within 2 months’ time frame.”

2] Ashok Leyland: Expecting sharp rally in Ashok Leyland share price Sandeep Matta of TRADEIT Investment said, “Ashok Leyland shares are slow mover among all auto counter. However, technically it has given breakout in last few trading sessions. The counter currently trading at 129 is technically a buy with stop loss of 115. It is facing immediate resistance around 135-136 levels and upon crossing will reach up to 145-150 levels.”

3] Hero MotoCorp: Speaking on HeroMotoCorp share price outlook Ravi Singhal of GCL Securities said, “One can buy Hero MotoCorp at around 2900 to 3000 for targets 3333, 3666 and 3999 in coming six months. However, one must maintain the stop loss at 2777 while taking buy position in the counter.” He said that normal monsoon prediction will lead to reverse migration that will help the company.

4] Force Motor: On Force Motor share price forecast Sandep Matta of TRADEIT Investment said, “Currently, Force Motor shares are trading at lower than its book value. One can buy the counter at around 1200 maintaining stop loss 1080 for the positional target of 1500 1800 in 6-8 months’ time frame.”

5] HBL Power: On his suggestion to the stock market investors in regard to HBL Power; Sandeep Matta said that the proxy player for targets of 53 to 60 in 3 month time-frame. However, he advised investors to strictly maintain the stop loss at 38.

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