Hero MotoCorp, Tata Motors, IndusInd Bank, Eicher Motors, Trent, Eternal and Swiggy were among major gainers on Monday as overall market sentiment improved. NSE Nifty closed 198 points higher and investors started September on a positive note. Automobile stocks witnessed strong buying on Monday. Among banking stocks, Axis Bank, IndusInd Bank, PNB, IDFC First Bank and ICICI Bank closed positive. TopNews Team has reviewed technical levels for buzzing stocks.

Hero MotoCorp: Underpinned by Resilience and Sector Reform

Hero MotoCorp is currently a beacon of relative strength in the auto sector, closing the latest session at ₹5,113.50, up about 3.18% in daily trading—a notable rebound after a period of consolidation. The company's retail engine continues to hum, evidenced by an 8% year-over-year sales surge in August, totaling 5.54 lakh units sold. First quarter 2025 earnings demonstrated resilience, with net profit reaching ₹1,125.7 crore, outperforming street expectations even as revenue dipped 5.6% to ₹9,578.9 crore and unit sales slid by 10.9%. Critically, EBITDA has stayed robust at ₹1,382 crore, preserving a healthy margin of 14.4%—a key barometer for investor confidence in a turbulent sector.

Anticipated GST reform looms large as a potential game-changer. Should the regime simplify and deliver tax cuts as projected, two-wheelers—Hero MotoCorp’s bread-and-butter—stand to benefit from lower consumer prices and a demand boost. Broader catalysts, such as prospective RBI rate cuts and seasonally driven festive demand, provide additional tailwinds, placing Hero MotoCorp in the spotlight for the months ahead.

The company is strategically positioning itself with an emphasis on expanding entry-level and deluxe motorcycle segments while aggressively rolling out electric bikes under its emerging VIDA brand. Short-term concerns around rare earth magnet supplies for EVs have been proactively managed, and management’s guidance suggests a 6–7% YoY industry growth for FY26, further supported by new 125cc model launches and deepening market footprint through distribution and marketing spend.

In terms of analyst sentiment, Jefferies recently elevated the stock to Hold with a target price of ₹5,200, citing upside from likely GST benefits. Investec, while neutral, raised its target to ₹4,400, flagging competitive and regulatory challenges from rivals Bajaj and Honda. Axis Securities and a broad analyst consensus remain overweight, with targets averaging ₹5,285, underpinning long-term optimism.

Technically, a bullish breakout is unfolding on strong trading volumes and momentum indicators, and Hero MotoCorp appears attractively valued for medium-term traders, with suggested targets ranging from ₹5,200 to ₹5,600 over the coming four to five months. The balance of financial strength and sector positioning marks Hero MotoCorp as a compelling option for investors seeking both stability and upside.

Tata Motors: Navigating Turbulence with Strategic Overhaul

Tata Motors has entered a volatile phase, with shares dropping more than 44% from recent highs, mirroring the mixed landscape in India’s auto sector and internal operational challenges. In its first quarter of FY26, consolidated net profit shrank by 63% YoY to ₹3,924 crore, though this surpassed conservative street forecasts. Overall revenue slipped just 0.3% YoY to ₹1.04 lakh crore, supported by domestic and international sales of 73,178 units in August—up 2% annually. Commercial vehicles remain its bright spot, growing 10% YoY, whereas passenger vehicles and iconic JLR brands continue to feel the pinch from external shocks, notably US tariffs and tepid demand globally.

A pivotal transformation is underway: Tata Motors is preparing to demerge its commercial and passenger vehicle arms by Q4 2025, a move expected to unlock shareholder value and sharpen operational focus. Capital allocation is equally assertive, with an investment outlay of ₹35,000 crore by 2030 earmarked for 30 new models, headlined by ambitious EV rollouts such as the Harrier EV (range up to 622 km).

Analyst opinion spans the spectrum: Jefferies sounds caution, maintaining an underweight rating and a target of ₹550 as they expect continued EPS weakness driven by JLR headwinds and domestic demand concerns. BNP Paribas, on the contrary, rates Tata Motors as “Outperform” (target ₹830), highlighting robust free cash flows and long-term growth. Wall Street’s composite view trends positive, with S&P Global reporting a Buy consensus and an average price target of ₹770.21, or about 12.13% upside.

Across Indian brokerages, targets generally fall within the ₹670–₹775 band, as detailed in the table below:

Valuation-wise, Tata Motors trades at a trailing P/E of 11.93 and P/B of 2.19, offering an attractive entry point compared to peers, though short-term clouds persist over margins and profitability. Risks remain palpable—especially around JLR’s exposure to geopolitically driven tariffs and an at times lethargic commercial vehicle market. However, if management delivers on restructuring and the much-vaunted EV push, investor confidence could find solid footing again.

Swiggy Limited: Turnaround Bets in a Fast-Evolving Duopoly

Swiggy operates at the frontlines of India’s rapidly changing digital commerce landscape, emerging as a high-risk, high-reward vehicle in the nascent duopoly shaping food delivery and quick commerce. Recent trading saw intraday gains of 4.61%, although the stock remains battered, down 20.71% year-to-date as persistent losses test investor patience. Fundamentals underline the challenge: EBIT to interest ratios are negative, with Swiggy posting a 34% profit contraction in the past year, plus Q2 FY25 net losses mounting to ₹1,197 crore—the fourth consecutive quarterly deficit.

Yet, despite weak delivery volume recovery (down 77.35% against the 5-day average) and broad operational headwinds, Swiggy has found selective favour among large institutional investors, signaling pockets of confidence in potential turnaround.

The growth story centers on quick commerce (QC), with Morgan Stanley initiating coverage at Overweight (target ₹405), forecasting a robust 15.8% CAGR in food delivery and a blistering 63% CAGR in the QC segment through FY28. DAM Capital projects a 28% revenue CAGR for FY25–28, expecting EBITDA profitability by FY28 (target ₹515). Jefferies joins the bullish camp, upgrading Swiggy to Buy (target ₹500), and tags the company as a “high risk–high reward” play, citing aggressive margin recovery post a pause in new store additions.

Execution remains the stumbling block. Swiggy’s discounted valuation relative to main rival Eternal (Zomato) is justified by ongoing skepticism around execution and profitability, with forecast improvements needing validation. HSBC and Goldman Sachs—while optimistic about asset monetization and cash burn reduction—flag persistent risks related to capital exhaustion and store productivity. Notably, if Swiggy can optimize costs, reignite store expansion, and diversify beyond groceries (including pioneering 10-minute delivery), consensus is clear: upside could be substantial.

Long-term, Swiggy’s fortunes rest on its ability to cement its position within the food delivery–quick commerce duopoly and demonstrate sustainable profit margins.

Analyst Ratings: At-a-Glance

Forward-Looking Investment Insights

Investors tracking Hero MotoCorp should monitor upcoming regulatory changes, festive season impacts, and the company’s new product rollouts, each of which could be pivotal in driving sentiment and share price. Tata Motors, while currently hampered by market agitation and structural transition, presents an alluring long-term case if it manages its restructuring and EV ambitions as planned. For Swiggy, the path to profitability—anchored in margin improvements and QC innovation—could catalyze outsized returns if execution risks are addressed and competitive pressures mitigated.