Pick of the day: Anil Singhvi gives buy call on this auto stock for profit booking

Hero MotoCorp is in the spotlight on Thursday, with Anil Singhvi naming it his Stock of the Day. He recommends buying Hero MotoCorp futures, with a stop-loss at Rs 5,010 and upside targets of Rs 5,155 and Rs 5,220.

At around Rs 5,075, the stock is showing solid momentum; thanks to improving sentiment in the two-wheeler space and supportive cues from the broader auto sector.

Why Auto Stocks Are in Focus

What’s driving the optimism? There’s growing chatter around a possible GST cut on two-wheelers and small passenger vehicles. If that happens, it could be a game-changer — especially for price-sensitive buyers in rural and semi-urban markets.

According to brokerages:

Auto industry volumes for FY26–28 could rise by 2–6 per cent

Earnings estimates (EPS) could see 2–8 per cent upgrades for companies like Hero MotoCorp, TVS Motor, Maruti Suzuki, and Hyundai

Jefferies, in fact, expects TVS Motor and Mahindra & Mahindra to lead the earnings growth pack with 27 per cent and 19 per cent CAGR, respectively, over FY25–28.

Jefferies Turns Positive on Hero MotoCorp

Adding to the positive sentiment, Jefferies has upgraded Hero MotoCorp to ‘Hold’ from ‘Underperform’, raising its target price to Rs 5,200 from Rs 3,800. The upgrade reflects stronger rural demand, easing costs, and the possibility of policy support.

The brokerage sees room for a steady recovery in volumes and margins, especially if the GST cut comes through.