Autos - India: What we learnt at BofA India Conference 2026?

研报英文原文证据摘录

Autos - India: What we learnt at BofA India Conference 2026?

ecution).

Auto part suppliers: Non-auto key focus area

Auto suppliers appear better placed structurally given healthy growth prospects

supported by multiple drivers & business model offers margin pass through. For SAMIL

(Motherson), bulk of investor conversation was focused on understanding revenue

potential of the non Auto segments viz. aerospace, consumer electronics & potentially

semi conductors. Aerospace business, it seems, can compound at pretty high growth

over mid term, with OEM empanelment in place, US$1.6B order book, new product

additions and upside to margins (F26 Rs25B revenues, 8.5% EBITDAm). For consumer

electronics, it is still tough to pen down numbers but 2H new plant commissioning

should bring in substantial jump from current low base & TAM remans sizeable. For

Sona Comstar, target is to deliver 20% revenue CAGR remains with traction motors,

suspension systems and railways being key revenue drivers ahead. There is also potential

for share gains in driveline in EU & recent wins albeit small are encouraging on this.

Refer to our upgrade note on Sona Comstar.

Investment view: Eicher, MM & TMCV key Buys

Demand in Autos continues to defy the macro for now, but risks are building ahead.

Near-term margin pressures remain acute and are likely to weigh on earnings over the

next two quarters. Beyond margins, growth risks are also emerging, with 2H facing a

high GST-driven volume base. Entry-level segments and CVs appear more vulnerable to

affordability constraints and macro headwinds (fuel price inflation, monsoon risk & rate

hike). Net-net, earnings downgrade risks are not fully behind us. In this volatile backdrop,

we remain selective & prefer high-quality execution names with superior margin