Union Transport Minister, Nitin Gadkari, on Friday, said that all government-owned vehicles that have completed 15 years will be scrapped from April 1, 2023. A draft notification regarding the matter has been issued.
“Yesterday, I signed a file under the guidance of Prime Minister Narendra Modi that all the vehicles of the Indian government which have completed 15 years will be scrapped. I have sent this policy of the Indian government to all the states. They should adopt this policy at the state level,” he said.
The Vehicle Scrappage Policy was introduced in the year 2021 and it is expected to benefit the industry in three ways. It will help in reducing emissions from worn-down vehicles, give impetus to the auto industry, and provide automobile scrap as a cheaper raw material to the steel industry. In the long run, this will promote a circular economy.
Here are a few auto stocks in which brokerages see an upside:
Tata Motors Ltd
Motilal Oswal has a buy call on the shares of Tata Motors, with a target price of ₹ 500.00. Its shares were trading at ₹ 435.65 apiece at 11:34 AM on Tuesday. Therefore, the given target suggests an upside of 14.77 per cent as compared to its share price.
Maruti Suzuki India Ltd
Motilal Oswal has a buy call on the shares of Maruti Suzuki India, with a target price of ₹ 11,250.00. Its shares were trading at ₹ 8988.60 apiece at 11:35 AM on Tuesday. Therefore, the given target implies an upside of 25.16 per cent as compared to its share price.
Mahindra & Mahindra Ltd
Prabhudas Lilladher has a buy call on Mahindra & Mahindra with a target price of ₹ 1500.00. Its shares were trading at ₹ 1,256.55 apiece at 11:36 AM on Tuesday. Therefore, the given target translates to an upside of 19.37 per cent as compared to its share price.
TVS Motor Company Ltd
Prabhudas Lilladher has a buy call on TVSMotor Company with a target price of ₹ 1275.00. Its shares were trading at ₹ 1,043.95 apiece at 11:37 AM on Tuesday. Therefore, the given target indicates an upside of 22.13 per cent as compared to its share price.
Eicher Motors Ltd
Morgan Stanley has an ‘equal weight ‘ rating on the stock with a target price of ₹ 4065.00. Its shares were trading at ₹ 3,451.00 at 11:37 AM on Tuesday Therefore, the given target suggests an upside of 17.79 per cent as compared to its share price.
Written by Simran Bafna
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