Buy

We maintain our BUY rating on the stock.

FY25 OEM share of sales- M&M: 27%, Bajaj Auto: 14%, HMSI: 5%, MSIL:8% Q2FY26 Result: Lumax auto technologies posted robust Q2FY26 results. On the consolidated basis, total operating income came in at 1,156 crore (up 37% YoY). EBITDA in Q2FY26 came in at 155 crore with corresponding EBITDA margins at...

Q2FY26 performance: Revenue declined by 1.6% YoY (+14% QoQ) to 744 crore as the revenue of cranes, construction equipment & material handling segment (94% of total revenue) was flat YoY (+15% QoQ). Agri equipments revenue (~6% of total) stood at 49 crore (-20% YoY, +6% QoQ). EBIDTA margin improved to 14.6% (+30 bps YoY, +41 bps QoQ). EBITDA was flat (+0.4% YoY) at 109 crore. However, PAT declined 5% YoY (8% QoQ) to 90 crore as other income declined by 14% to 29 crore. PAT Margins declined 35 bps YoY to 11.6%. Company saw 18% decline in volumes in cranes, construction equipment segment to 2348 units vs 2863 units last...

We maintain our BUY rating on the stock.

Bajaj Auto’s (BJAUT) Q2FY26 operational performance was broadly in line with our estimate. Domestic 2W industry growth is expected to pick-up pace (~6-8% volume growth) going ahead led by the benefit of GST rationalisation and strong festive season.

Craftsman Automation’s (CFTM) consolidated revenue grew 65% YoY to INR 20bn, 10% higher vs. I-Sec est. EBITDA margin of 15.1% in Q2FY26 (up 20bps QoQ), was largely in line with I-Sec est. of 15.0%. Margin expansion was led by operating leverage and cost optimisation.

GST Rationalization: Structural boost for Automobile industry: Government has announced GST 2.0 reforms thereby reducing GST rates for the automobile sector across the segments and value chain. Small cars, 2-Ws up to 350cc, & 3-Ws will now attract 18% GST vs. 28% earlier, while CVs also shift to 18% rate. Total tax incidence for larger passenger cars, SUVs is also reduced from 43-50% to 40%. Furthermore, uniform 18% GST rate on all auto parts has been introduced, which will improve Uno Minda's cost competitiveness and demand across both OEM & aftermarket....

Quarter of milestones, EV and exports to fuel growth About the stock: Bajaj Auto (BAL) is the second largest motorcycle manufacturer and largest 3-W OEM domestically. It also has a presence in export markets. Strong momentum across core and new growth drivers: Bajaj Auto saw broad-based recovery across domestic, export, and EV segments, reflecting the company's strategic agility and diversified portfolio. Exports reached an all-time high, supported by geographical diversification and local assembly initiatives in Latin America, ensuring resilience against...

We recommend a BUY on the stock.

Motherson Sumi Wiring India (MSUMI) continued to outperform the underlying industry driven by healthy content growth and new business execution. Reported margins (40bps below I-Sec) were impacted by start up costs for its new plants. Profitability (ex-greenfields) remained steady YoY.

MSWIL's revenue growth in 2QFY26 exceeded our estimate, though PAT of INR1.6b was in line with our estimate as margins continued to be under pressure due to the impact of start-up costs of the new greenfield plants.

Tube Investments’ (TIINDIA) 2QFY26 PAT at INR1.86b came in line with our estimate of INR1.78b, even as EBITDA margin at 13.1% was ahead of our estimate of 12.2%.

Mahindra & Mahindra (MM)’s 2QFY26 PAT at INR45b was above our estimate due to better-than-expected margins (both from auto and FES segments), as well as higher other income.

We maintain a BUY rating with a 15% upside potential.

We maintain our BUY rating on the stock.

Market leader in each sub-segment - cars (66.9%), UV (25.8%), vans (90%) Q2FY26 Results: MSIL reported steady performance in Q2FY26. Sales volume for the quarter stood at 5.50 lakh units, up 1.7% YoY. Total operating income for Q2FY26 came in at 42,101 crore with ensuing ASPs at 7.3 lakh/unit, up 5% QoQ. EBITDA margins for the quarter came in at 10.5%, up 10 bps QoQ. Consequent PAT...

Maruti Suzuki’s Q2 standalone EBITDA was flat y/y at Rs44bn, above our Rs38bn estimate, owing higher realisation & other operating income.

sion systems, gears, shafts, and ring gears, along with spare parts and non-core components used in agricultural and construction machinery. CIL operates two advanced manufacturing facilities in Pune, Maharashtra, equipped with modern machining, testing, and assembly infrastructure. As of FY25, the company derived 47.4% of its revenue from agricultural tractors, 41.4% from construction vehicles, and 11.2% from other product lines. The domestic market contributed 67.2% of total revenue, while exports accounted for 32.8%. Its strong OEM relationships, increasing localization, and...

Maruti Suzuki (MSIL)’s 2QFY26 PAT was in line, while EBITDA margin came in better than our estimate due to an improved mix.

Structural positives: Low car penetration, GST Rationalization: Although India is the world's third largest passenger vehicle market, car penetration still remains low (at ~30 cars per 1000 people) vs. global average, developed economies in the West & China. With rising per capita income, this represents healthy long term growth longevity for domestic PV space with HMIL a clear beneficiary. Further, Government has announced GST 2.0 reforms thereby reducing GST rates for the automobile sector across the segments and value chain. Small cars will now attract...