Motherson Sumi may hit Rs 166 a share and Bharat Forge may rise to Rs 903, says Credit Suisse

Indian auto suppliers are gaining market share and benefitting from the production-linked incentives (PLI) scheme as well as domestic growth, according to brokerage firm Credit Suisse.

The firm has initiated coverage on three stocks - Motherson Sumi, Bharat Forge and Sona BLW.

The brokerage house has an “outperform” rating on both Motherson Sumi and Bharat Forge with a target price of Rs 166 and Rs 903, respectively. It, however, has a “neutral” rating on Sona BLW with a target price of Rs 552.

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Credit Suisse see the biggest gain for Motherson Sumi because of the large quantum of the orderbook marked down owing to the slowdown.

For Bharat Forge, the firm believes that the recovery is unappreciated by the market at this point in time. For Sona BLW, Credit Suisse is bullish on growth. However, it believes the growth is priced in.