HSBC said the commercial vehicle sector continues to demonstrate steady profitability supported by a stable demand environment and disciplined discounting practices, which provide healthy earnings visibility. According to the brokerage, the growth trajectory, margin profile and return ratios of the CV industry are now comparable to those of the passenger vehicle segment, reflecting a meaningful structural improvement.
HSBC has initiated coverage on TMCV with a buy rating and a target price of ₹380, calling it well-positioned to benefit from cyclical strength and sustained replacement demand. For Ashok Leyland, the brokerage maintained a Hold rating and raised its target price to ₹160, noting that while the broader cycle remains favourable, competitive intensity and cost movements remain watchpoints.
The brokerage expects the CV sector to stay resilient as infrastructure spending, fleet replacement cycles and disciplined pricing support near-term and medium-term profitability.
Disclaimer: The views above are those of HSBC. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
