TVS Motor-Bajaj Auto-and Ashok Leyland Hit Record Highs: What’s Fueling Their Surge?

TVS Motor and Bajaj Auto, two 2-wheeler firms on which JP Morgan has placed a bet, saw their stocks reach a fresh all-time high today.

TVS Motor-Bajaj Auto-and Ashok Leyland Hit

TVS Motor-Bajaj Auto-and Ashok Leyland Hit

Despite the significant inventory buildup with the industry body, which was causing worry for the auto pack, the Nifty Auto index saw growth on Friday. The Nifty Auto index was up more than 1% as of the time this piece was written, at approximately 12:33 pm, despite the bluechip Nifty index seeing only slight gains in trading.

Three stocks—TVS Motor, Bajaj Auto, and Ashok Leyland—marked new all-time highs in trading today amid the strong rise.

TVS Motor, TVS Motor-Bajaj Auto-and Ashok Leyland Hit

TVS Motor shares reached a new record high of Rs 2,818 and were last trading at Rs 2,797.95, up 3.4 per cent or Rs 92. The stock has increased by 107% in the past year. The business said on Thursday that the new TVS Jupiter 110 cc scooter would be on sale for Rs 73,700 ex-showroom, TVS Motor-Bajaj Auto-and Ashok Leyland Hit.

Following the introduction, JP Mogan boosted their target price for the company’s shares from Rs 3050 to overweight from neutral. A possible increase of about 13 percent is implied by the revised aim. The brokerage claimed that in spite of Ola’s aggressiveness in EVs and Honda’s comeback, the company’s retail sector has held up well. We anticipate The firm noted that consensus EPS upgrades will enhance FY26–27E EPS by 5–18% when the company resumes its launch cycle.

UBS, however, has maintained its buy position on the currency and increased its objective to Rs 3,200, indicating a gain of more than 18%. According to the brokerage, the company’s new Jupiter model can support an additional 15-20k volumes, or an increase of 30–40% over the outgoing model.

Bajaj Vehicle: TVS Motor-Bajaj Auto-and Ashok Leyland Hit

Bajaj Auto also reached a new all-time high today of Rs 10,373.35 and closed the most recent transaction higher, up more than 4% at Rs 10,339.4. The stock increased following the announcement by international stockbroker JP Morgan that it favors two-wheeler companies with a variety of income streams and growth in market share.Moreover, it is optimistic about TVS Motor andBajaj Auto, however, has expressed caution regarding Eicher Motors.

JP Morgan on companies with two wheels

In a note on two-wheeler companies, JP Morgan stated that this is maybe the most appealing area inside the Indian auto industry. For FY24–27, the brokerage projects volumes to increase at an 8% CAGR. Furthermore, according to JP Morgan, the category will perform better than any others in the industry because of the robust demand and current inventory levels, TVS Motor-Bajaj Auto-and Ashok Leyland Hit

Furthermore, even if the market for electric 2-wheelers is growing slowly, margin pressure is not expected to affect the segment.

JP Morgan also emphasized that both businesses are quickly catching up in market share through fresh launches and expansion of their respective businesses, even in spite of Ola’s significant market share in the EV industry routes of distribution. (TVS Motor-Bajaj Auto-and Ashok Leyland Hit)

E-2W Market Share

Company             FY23               FY25 YTD
OLA                        21%                    44%
TVS Motor           11%                     16%
Bajaj Auto            4%                       13%

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