Axis Securities has identified five automobile and auto ancillary companies as its top conviction ideas for June 2026, citing export momentum, premiumisation trends, capacity expansion plans, growing electric vehicle opportunities and strong order books as key drivers.
The brokerage retained ‘Buy’ recommendations on Bajaj Auto, Eicher Motors, Maruti Suzuki India, Endurance Technologies and Minda Corporation. Axis Securities said improving export demand, premium product launches, capacity additions and rising content per vehicle are expected to support growth across the sector despite near-term pressures from commodity inflation and geopolitical uncertainties.
The brokerage said it remains selective on the automobile sector, favouring companies with strong export franchises, premium product portfolios and visible long-term growth drivers. Axis Securities also expects premiumisation and exports to remain the primary growth engines for the industry in FY27.
Axis Securities on Bajaj Auto: ‘Buy’
Axis Securities retained its ‘Buy’ recommendation on Bajaj Auto with a target price of Rs 11,410. This implies upside of 12%. The brokerage said Bajaj Auto’s international business remained a key growth driver during Q4FY26, with export volumes exceeding 6,00,000 units for the second consecutive quarter.
Growth was led by Latin America, which recorded its 11th consecutive quarter of expansion, while Africa showed signs of recovery and Brazil continued to scale up supported by premium positioning and capacity expansion.
“Management remains constructive on exports, supported by geographic diversification and favourable currency tailwinds,” Axis Securities said.
The brokerage also highlighted the company’s three-wheeler business, where FY26 volumes crossed 5 lakh units for the first time. Axis Securities said the segment continues to benefit from rising shared mobility demand, improved rural connectivity and rapid electrification.
Another area highlighted by the brokerage was Bajaj Auto Credit Limited. Axis Securities noted that assets under management expanded to about Rs 19,000 crore, while return on equity improved to around 23%, making the financing arm an increasingly important contributor to the broader Bajaj Auto ecosystem.
Axis Securities on Eicher Motors: ‘Buy’
Axis Securities maintained its ‘Buy’ recommendation on Eicher Motors with a target price of Rs 8,060. This implies upside of 15%. The brokerage said Royal Enfield’s multi-phase capacity expansion programme provides long-term visibility. Existing production capacity of about 1.4 million units is expected to increase to roughly 1.6 million units by June-July 2026 through debottlenecking initiatives, while a Rs 958 crore brownfield expansion in Tamil Nadu is expected to lift capacity to around 2 million units by Q2FY28.
“International volumes remained robust during FY26, with exports growing ~20% YoY to 1.2 lakh units, led by strong momentum in Latin America and SAARC markets,” Axis Securities said.
The brokerage also pointed to Royal Enfield’s entry into electric mobility through the Flying Flea C6 platform. Axis Securities said management intends to follow a calibrated rollout strategy focused on building a premium electric mobility category rather than pursuing volume-led expansion in the initial phase.
Axis Securities on Maruti Suzuki India: ‘Buy’
Axis Securities retained its ‘Buy’ recommendation on Maruti Suzuki India with a target price of Rs 14,620. The target price implies upside of 14% from current levels. The brokerage said domestic demand remained healthy in Q4FY26, helping the company achieve record total sales of 24,22,713 units.
Domestic sales rose to 19,74,939 units from 19,00,604 units year-on-year, while exports increased to 4,47,774 units from 3,32,585 units during the same period.
Axis Securities said demand was supported by improving traction in the small-car segment and higher participation from first-time buyers. However, production capacity constraints resulted in a pending order book of 1,90,000 units.
“Exports continued to be a key driver for Maruti Suzuki India Limited in Q4FY26, with the company maintaining leadership at ~49% share of India’s PV exports,” Axis Securities said.
The brokerage also highlighted Maruti Suzuki’s electric vehicle strategy centred on the eVX platform. According to Axis Securities, capacity additions at the Gujarat facility are expected to support a larger production ramp-up after July, while the company continues to invest in charging infrastructure across the country.
Axis Securities on Endurance Technologies: ‘Buy’
Axis Securities maintained its ‘Buy’ recommendation on Endurance Technologies with a target price of Rs 2,880, implying 15% upside from current levels. The brokerage said Endurance Technologies continues to strengthen its manufacturing footprint through expansion projects across braking systems, suspension products, aluminium forging and proprietary components.
Axis Securities noted that the company is adding around 1.2 million units of anti-lock braking system capacity, while a new brake manufacturing facility in Chennai is expected to begin supplies to Royal Enfield from July 2026.
“Endurance Technologies continues to strengthen its manufacturing capabilities through multiple greenfield expansion projects aimed at supporting future growth across braking systems, suspension, aluminium forging, and proprietary product categories,” Axis Securities said.
The brokerage also highlighted the performance of Maxwell, Endurance Technologies’ electric vehicle-focused subsidiary. Turnover increased to Rs 162 crore in FY26 from Rs 70 crore in FY25, while the company continues to expand its battery pack, battery management system and power electronics offerings.
Axis Securities on Minda Corporation: ‘Buy’
Axis Securities retained its ‘Buy’ recommendation on Minda Corporation with a target price of Rs 710. The target price indicates 10% upside from current levels. The brokerage said the company continues to benefit from premiumisation trends, electric vehicle opportunities and a growing order book.
Axis Securities highlighted a lifetime sunroof order worth around Rs 1,050 crore, with mass production expected to begin over the next four to five months. The brokerage also pointed to multiple orders for advanced instrument clusters and progress within the company’s electric vehicle initiatives through its Turntide Technologies joint venture.
“Minda Corporation’s order book continues to provide strong medium-term revenue visibility and highlights the success of its premiumisation and export-led growth strategy,” Axis Securities said.
The brokerage noted that Minda Corporation reported a record lifetime order book exceeding Rs 10,000 crore in FY26, with nearly 20% of order inflows linked to exports. Axis Securities said the diversified pipeline provides visibility across sunroofs, wiring harnesses, instrument clusters, tyre pressure monitoring systems, switches and electric vehicle solutions.
Premiumisation and exports remain key sector themes
Axis Securities said premiumisation and exports are likely to remain the primary growth drivers for the automobile industry.
The brokerage expects two-wheeler sales to deliver mid-single-digit growth in FY27, supported by premium segment launches and improving exports. Passenger vehicle sales are also expected to grow at a mid-single-digit pace, aided by new launches and demand within the utility vehicle segment.
For auto ancillaries, Axis Securities said product premiumisation, strong order books, export growth and rising electric vehicle penetration are expected to increase content per vehicle and support profitability over the longer term.
Conclusion
Axis Securities’ latest top conviction list reflects its preference for companies with strong export franchises, visible capacity expansion plans and exposure to premiumisation and electric vehicle trends. The brokerage continues to favour Bajaj Auto, Eicher Motors and Maruti Suzuki among vehicle manufacturers, while Endurance Technologies and Minda Corporation remain its preferred auto ancillary picks.
According to Axis Securities, improving export demand, new product launches, expanding manufacturing capacity and rising technology content across vehicles are expected to remain the key drivers shaping the sector’s growth trajectory in FY27 and beyond.
Disclaimer: The specific stock recommendations, target prices, and auto sector growth projections discussed in this report are based on institutional equity research from Axis Securities and do not constitute direct buy, sell, or hold advice for retail investors. Equity investments in the automotive and ancillary sectors carry specific market risks, including commodity inflation, global supply chain disruptions, and evolving electric vehicle regulatory policies. Because individual financial goals, investment horizons, and risk appetites vary, readers are strongly advised to consult a SEBI-registered investment advisor or a qualified financial consultant before making individual capital allocations based on these brokerage insights.
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