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Speed ​​up your stock market journey in 2022 with these top 5 automotive industry picks

Speed ​​up your stock market journey in 2022 with these top 5 automotive industry picks

The Indian auto sector is one of the most promising when it comes to investing your money in 2022. The NIFTY AUTO index returned 30.61 percent in one year, while the NITFY 50 returned 1.99 percent in one year. yielded one year. So the Auto Index returned 15.3 times more than Nifty 50.

According to a report by the Indian Brand Equity Foundation (IBEF), the Indian auto sector is expected to reach rupees 16-18 trillion by 2026.

Export trends are also on the higher side. According to data from the Society of Indian Automobile Manufacturers, passenger and commercial vehicles recorded a 42.8 percent and 83.3 percent increase in exports, respectively.


Interestingly, all major Indian automakers have slowly started their transition into the electric vehicle (EV) segment.

This can also be the best time to invest in the auto sector as the holiday season kicks off from Raksha Bandhan to Diwali and auto sales are soaring across India.

“The revenue growth outlook for CY22 for a majority of players is 10-12 percent year-over-year (yoy), despite setbacks in the form of recession fears, droughts and supply chain issues affecting demand estimates,” said one stock research report from ICICI Securities.

Top 5 Automotive Picks

Top 5 Stocks by Market Capitalization

Here are the top 5 stocks according to Market Cap

Maruti Suzuki (MARUTI)

Maruti Suzuki is the leading manufacturer in the passenger car industry. It was established in 1981 and is partially owned by the Indian government. The market cap of Maruti Suzuki is Rs 2.6 lakh crore. The share price is Rs 8,880.95 as of the closing time on September 6, 2022. The share has returned 29.24 percent in one year. The company’s quarterly revenue on June 22 stands at Rs 26,510 crore and recorded a growth of 41.14 percent yoy.

Maruti plans to invest Rs 18,000 crore in setting up electric vehicle production units, thus will be prepared for the transition from petrol to electric vehicles.

Tata Motors (TATA MOTORS)

The global automaker is India’s largest automaker with presence in various segments from trucks, where it is the dominant player, to luxury passenger cars. It owns the Jaguar Land Rover brand in the luxury car segment. The market cap is Rs 1.6 lakh crore. The share price is Rs 457.95 at the closing time on September 6, 2022. The share has returned 54.66 percent in one year. The company’s quarterly turnover on June 22 is Rs 71,935 crore. It registered a growth of 8.32 percent yoy. Tata Motors has invested heavily in EV infrastructure and is well positioned to independently manufacture almost all parts of an EV vehicle.

Mahindra and Mahindra (M&M)

Mahindra and Mahindra have noticed a meteoric rise in recent years. It started in 1945 as a steel trading company in Ludhiana, but soon turned into the production of light commercial vehicles and tractors. At present, the market cap is around Rs 1.57 lakh crore. The share price is Rs 1,303 at the closing time on September 6, 2022. The share has bounced back by 74.93 percent in one year. The company’s quarterly revenue on June 22 is Rs 28,630 crore. It posted a 47.81 percent year-on-year growth.

M&M has been one of the pioneers in the EV passenger vehicle segment, starting with the mini-compact category to the newly unveiled SUVs with a modern design.

Bajaj Auto (BAJAJ CAR)

Bajaj Auto is a global car manufacturer from Pune. They make two-wheeled vehicles and auto rickshaws. The company was founded in 1945. Initially they were importers of two- and three-wheel vehicles, but later they switched to two-wheeler production and were licensed by Piaggio, Italy to manufacture Vespa scooters in India. At present, their market cap is around Rs 1.16 lakh crore. The share price is 3,934 on September 6, closing time. Their share has returned 4.69 percent in one year. The company’s quarterly revenue on June 22 is Rs 8,320 crore. They recorded a 7.9 percent year-on-year growth.


They have already entered the EV market and have an electric version of their classic Chetak scooter.

Eicher engines (EICHERMOT)


Eicher Motors is a multinational automotive company and one of the leading players in the commercial vehicle and motorcycle segment. They are now the parent company of the iconic British motorcycle brand Royal Enfield. The company was founded in 1948 as Goodearth Company to provide services for imported tractors. At present, their market cap is about Rs 93,500 crore. The share price is Rs 3,405 on September 6, closing time.

The stock has risen by 21.19 percent in one year. The company’s quarterly revenue on June 22 is Rs 3,330 crore. It registered a growth of 71.18 percent per year.

Eicher Motors already has an electric bus for sale on the market and the Royal Enfield brand is currently working on a range of high quality electric motorcycles.