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Festive Demand to Boost Auto Sales; TVS Motor, Bajaj Auto Top Picks: SBI Securities
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CNBC TV18•01-10-2026, 13:35
Festive Demand to Boost Auto Sales; TVS Motor, Bajaj Auto Top Picks: SBI Securities
- •SBI Securities expects auto sales to improve in October and November due to the festive season, despite weak September numbers.
- •Sunny Agrawal of SBI Securities attributes the September slowdown to a high base and festive calendar shift, not weak demand.
- •TVS Motor is the preferred two-wheeler pick, with an expected 18-19% sales growth; Bajaj Auto also offers value with strong exports.
- •Opportunities are seen in power transmission equipment companies following the PM DHARA scheme, with Polycab as a top pick.
- •Agrawal is selective on recent IPOs, favoring SS Retail and Glass Wall Systems, but cautious on ESDS due to valuation concerns.
Key Questions Answered
SBI Securities attributes the September auto sales slowdown primarily to a high base effect from last year and a shift in the festive season calendar rather than any structural weakness in consumer demand.
SBI Securities highlights TVS Motor and Bajaj Auto as top picks in the two-wheeler segment, expecting strong growth and value as the festive season gathers pace.
The Cabinet-approved PM DHARA scheme is expected to create strong opportunities in power transmission equipment, specifically benefiting established transformer and cable companies like Polycab.
