Shares of Tenneco Clean Air India surged nearly 6% in Wednesday’s session after brokerage firm Citi initiated coverage with a ‘buy’ rating and a target price of Rs 650.
The stock rose 5.94% to Rs 545.70, gaining Rs 30.60 from its previous close of Rs 515.10. During the session, it traded in a range of Rs 527.40 to Rs 544.85, taking its market capitalization to approximately Rs 21,976 crore. The company currently trades at a price-to-earnings ratio of 38.06.
Citi highlighted that the company operates under the Tenneco Group and has two primary business segments — clean air and powertrain solutions, along with advanced ride technologies focused on shock absorber components.
The brokerage pointed to multiple organic growth drivers supporting the outlook. These include premiumisation trends in India’s passenger vehicles with higher utility vehicle penetration, increased tonnage in commercial vehicles, and the impact of stricter emission norms. Additionally, new order wins and a shift of manufacturing orders from global Tenneco plants to India are expected to support growth.
However, Citi also flagged key risks for the company. These include its higher exposure to internal combustion engine (ICE) powertrains, volatility in raw material prices, and potential delays in the implementation of emission-related government policies such as CAFÉ, BS-7, and TREM-V.
As of Wednesday’s session, the stock remained in focus with strong buying interest following the brokerage upgrade.
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