HDFC Securities stays positive on Bajaj Auto, TVS Motor and Indian Hotels after Q1
The brokerage retained positive calls following Q1 FY27 results, citing EV momentum, new-product launches and export demand for automakers, alongside domestic tourism, occupancy gains and asset-light expansion at Indian Hotels.
What happened
HDFC Securities retained positive ratings on Bajaj Auto, TVS Motor and Indian Hotels after Q1 FY27, citing EV growth, new-model launches, export demand,
Key facts
- Bajaj Auto target price: Rs 12,146
- Bajaj Auto launch pipeline: 10 new models
- TVS Motor target price: Rs 4,084
- Indian Hotels target price: Rs 801
- Mahindra & Mahindra Financial Services target price: Rs 385
- Bandhan Bank target price: Rs 155
- Sobha target price: Rs 1,930
- Aavas Financiers target price: Rs 1,595
- IndiaMART target price: Rs 2,375
Why this matters
Corporate-development teams should note the appeal of EV ecosystem partnerships, export-channel expansion and asset-light hotel growth opportunities as these sectors gain from sustained demand.
What to watch
- Sustained acceleration in Bajaj Auto and TVS Motor export volumes, especially in Africa, Latin America and South Asia.
- EV sales mix rising without material dealer discounts or margin dilution.
- Management upgrades to FY27 volume, EBITDA-margin or export guidance.
- Indian Hotels reporting continued double-digit RevPAR growth, stable-to-higher occupancy and rapid asset-light additions.
- A sharp increase in competitive EV incentives, prolonged export-market currency stress, or hotel supply additions outpacing demand.
- Track monthly domestic two-wheeler registrations, EV mix, export dispatches and dealer inventory for Bajaj Auto and TVS Motor.
- Watch launch timelines, booking trends and pricing actions in electric scooters, motorcycles and premium segments.
- Monitor gross-margin drivers including steel, aluminum, battery-cell costs, currency movements and incentive changes.
- Follow Indian Hotels RevPAR, occupancy, average room rate, management-fee growth, new signings and pipeline conversion.
- Assess festive-season demand, rural consumption indicators, interest rates and discretionary-spending trends for confirmation of the brokerage thesis.