Last Updated on Jan 2, 2024 by Harshit Singh
Auto stocks in India have been one of the best-performing sectors in recent times, and for a good reason. India’s auto sector has experienced unprecedented growth, and the Nifty Auto index has consistently outperformed the Nifty50 over the past decade.
Despite some challenges over the past few years, including regulatory changes and supply chain disruptions, the auto sector is performing relatively well. Here are the top performing auto stocks in India –
Table of Contents
Top performing auto stocks
| Stock Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | 1M Return (%) | 1Y Return (%) |
| MRF Ltd | Tires & Rubber | 54,890.38 | 1,29,423.55 | 16.06 | 46.99 |
| CEAT Ltd | Tires & Rubber | 9,833.42 | 2,431.00 | 15.58 | 49.16 |
| Bajaj Auto Ltd | Two Wheelers | 1,89,761.59 | 6,701.10 | 11.82 | 87.50 |
| Tata Motors Ltd | Four Wheelers | 2,89,449.00 | 790.60 | 10.22 | 100.25 |
| Tata Motors Ltd | Four Wheelers | 1,51,860.11 | 525.95 | 7.97 | 150.21 |
Note: The top auto sector stocks in India are derived using Tickertape Stock Screener. The data is as of 2nd January 2024, and the parameters are as follows –
- Stock Universe – Nifty 500
- Sector – Consumer Discretionary > Four wheeler, three wheeler, two wheeler, tires & rubbers
- 1M return – Sorted from highest to lowest
Fundamentally strong auto stocks
| Stock Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | Return on Equity (%) | Net Income Rs. in cr.) | Debt to Equity (%) |
| TVS Motor Company Ltd | Two Wheelers | 95,922.46 | 2,019.05 | 24.24 | 1,328.67 | 378.62 |
| Bajaj Auto Ltd | Two Wheelers | 1,89,761.59 | 6,701.10 | 20.47 | 6,060.21 | 0.42 |
| Hero MotoCorp Ltd | Two Wheelers | 82,324.52 | 4,118.55 | 17.15 | 2,809.96 | 3.38 |
| Mahindra and Mahindra Ltd | Four Wheelers | 2,03,946.72 | 1,703.30 | 16.60 | 10,281.50 | 137.51 |
| Balkrishna Industries Ltd | Tires & Rubber | 49,803.34 | 2,576.25 | 14.59 | 1,057.40 | 44.28 |
| Maruti Suzuki India Ltd | Four Wheelers | 3,23,309.60 | 10,283.30 | 14.02 | 8,211.00 | 2.02 |
| Apollo Tyres Limited | Tires & Rubber | 28,785.95 | 453.25 | 8.97 | 1,104.64 | 49.86 |
| CEAT Ltd | Tires & Rubber | 9,833.42 | 2,431.00 | 5.51 | 186.17 | 66.40 |
| MRF Ltd | Tires & Rubber | 54,890.38 | 129,423.55 | 5.35 | 768.95 | 20.49 |
| Tata Motors Ltd | Four Wheelers | 2,89,449.00 | 790.60 | 4.76 | 2,414.29 | 254.97 |
Note: The top auto sector stocks in India are derived using Tickertape Stock Screener. The data is as of 2nd January 2024, and the parameters are as follows –
- Stock Universe – Nifty 500
- Sector – Consumer Discretionary > Four wheeler, three wheeler, two wheeler, tires & rubbers
- Return on Equity – Sort from highest to lowest
- Net Income – Positive – Set the lower value to zero
- Debt-to-Equity Ratio
Auto stocks based on high dividend yield
| Stock Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | Dividend Yield (%) | Dividend Per Share (Rs.) |
| Hero MotoCorp Ltd | Two Wheelers | 82,324.52 | 4,118.55 | 2.43 | 100.00 |
| Bajaj Auto Ltd | Two Wheelers | 1,89,761.59 | 6,701.10 | 2.09 | 140.00 |
| Apollo Tyres Limited | Tires & Rubber | 28,785.95 | 453.25 | 0.99 | 4.50 |
| Mahindra and Mahindra Ltd | Four Wheelers | 2,03,946.72 | 1,703.30 | 0.95 | 16.25 |
| Maruti Suzuki India Ltd | Four Wheelers | 3,23,309.60 | 10,283.30 | 0.84 | 90.00 |
| Balkrishna Industries Ltd | Tires & Rubber | 49,803.34 | 2,576.25 | 0.62 | 16.00 |
| CEAT Ltd | Tires & Rubber | 9,833.42 | 2,431.00 | 0.49 | 12.00 |
| TVS Motor Company Ltd | Two Wheelers | 95,922.46 | 2,019.05 | 0.25 | 5.00 |
| Tata Motors Ltd | Four Wheelers | 2,89,449.00 | 790.60 | 0.23 | 2.00 |
| MRF Ltd | Tires & Rubber | 54,890.38 | 129,423.55 | 0.14 | 175.00 |
Note: The top auto sector stocks in India are derived using Tickertape Stock Screener. The data is as of 2nd January 2024, and the parameters are as follows –
- Stock Universe – Nifty 500
- Sector – Consumer Discretionary > Four wheeler, three wheeler, two wheeler, tires & rubbers
- Dividend yield – Sorted from highest to lowest
Note that these stocks are in no order of preference. Please note that these stock selection criteria and the stocks are provided for informational purposes only; it is essential to conduct your own research.
Why it is the right time to invest in auto stocks?
Most of the nifty auto index stocks have witnessed a surge in profit in the last financial years, and we believe the trend is going to be carried forward because of the following developments –
Growth potential
A report by rating agency ICRA stated that the domestic automotive industry is projected to experience growth in the high single-digit range during 2023-24. Further, the report indicates that in FY 2024, passenger vehicle demand is forecasted to increase by 6-9%, commercial vehicles by 7-10%, two-wheelers by 6-9%, and tractors by 4-6%.
Government initiatives
The Indian government announced a Production-Linked Incentive (PLI) Scheme with an outlay of $3.5 bn for the automobile and auto components sectors. The scheme offers up to 18% financial incentives to boost domestic manufacturing of advanced automotive technology products, attract investments, and encourage sales of locally manufactured products.
Technological advancement
By 2030, it is estimated that India is set to become a leader in shared mobility with a focus on electric and autonomous vehicles to reduce emissions. The electric vehicle market is expected to reach Rs. 50,000 cr. by 2025, potentially creating 5 cr. jobs by 2030.
Foreign investment
As demand grows, auto manufacturers have invested in various industry segments over the last few months. By this year’s end, the government expects the automobile sector to attract US$ 8-10 bn in local and foreign investments by 2023.
Note: Indian auto industry has attracted US$33.53 bn in FDI between April 2000 and June 2022, accounting for 5.54% of total equity FDI.
How to invest in Nifty auto stocks?
You can invest in Nifty auto stocks by following the below-mentioned process –
Step 1: Launch the Stock Screener
Step 2: Under the “Sectors” option in the filter panel on the left-hand side, select “Consumer Discretionary.”
Step 3: Under ‘Consumer Discretionary,’ select ‘auto parts’ from the drop-down, ‘four wheelers,’ ‘two wheelers,’ ‘three wheelers,’ and ‘trucks and buses.’
Step 4: Click the ‘Add Filter’ button to select key parameters to help you analyse a stock.
Step 5: Once you have added all your desired filters, go to each in the Filter Panel and adjust the range per your requirements.
Step 6: You can see all the auto stocks meeting your filter criteria.
Step 7: If you want to buy the stock, click on the stock and select ‘Place Order.’
Step 8: If you’ve already added your groww account or any other demat account, etc., on Tickertape, click on ‘Buy Now’ to complete the trade.
Step 9: If you want to save the screen for the future, click “Save” at the top of the filter panel.
Conclusion
India’s auto sector has recently been among the best-performing sectors, backed by consistent growth and strong returns. Moreover, most auto stocks are trading near their respective last 10-yr average PE multiples. This presents a great opportunity for investors looking to diversify and add auto stocks to their investment portfolios. However, consider your investment objectives and consult your investment advisor before taking any step.
FAQs
How many auto stocks are there on Nifty 50?
There are six auto stocks in Nifty 50, namely –
– Maruti Suzuki India Ltd
– Mahindra and Mahindra Ltd
– Eicher Motors Ltd
– Hero MotoCorp Ltd
– Tata Motors Ltd
– Bajaj Auto Ltd.
Name 4 top two wheeler companies listed on NSE.
Based on market capitalisation, the top two wheeler companies listed on NSE are as follows –
– Bajaj Auto Ltd
– TVS Motor Company Ltd
– Hero MotoCorp Ltd
– Maharashtra Scooters Ltd
Which Nifty large cap auto stock performed well in December 2023?
Bajaj Auto Ltd has generated a return of 11.82%, outperforming other auto stocks in Nifty 50.
As an investment fanatic, I’ve dabbled in early-stage startups, mutual funds, gold, stocks, smallcases, and real estate to identify which assets generate the highest ROI. At Tickertape, I’m dedicated to presenting my learning and providing insightful suggestions to help my readers make sound investment decision.
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