Recommendation from Automobile & Ancillaries and Capital Goods Sector

The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.[EasyDNNnews:PaidContentStart]

CEAT Ltd.
CMP - ₹4,076.60
BSE CODE 500878
Volume 18,558
Face Value ₹10
Target ₹4,400- ₹4,485
Stoploss ₹3,790 (CLS)

CEAT Ltd is among India’s top tyre manufacturers with a strong presence across passenger vehicles, two-wheelers, commercial vehicles, and off-highway tyres. CEAT Ltd completed the acquisition and full integration of the Camso brand from Michelin, marking a major step in its global premiumisation strategy. The move enhances CEAT’s presence in the off-highway tyre segment and strengthens its international footprint. In Q2FY26, the company posted a notable 14 per cent year-on-year revenue growth to ₹3,773 crore, while net profit surged 54 per cent to ₹186 crore, up from ₹121 crore in the corresponding quarter of the previous year. The stock witnessed robust buying interest following its stellar quarterly performance, rallying more than 25 per cent over the past month. The management highlighted that one of the key developments during the quarter was the reduction in GST rates on tyres and vehicles, which they believe will positively impact demand across domestic categories. Given the potential for further upside, we recommend BUY.

Kirloskar Oil Engines Ltd.
CMP - ₹1,006.60
BSE CODE 533293
Volume 2,19,728
Face Value ₹2
Target ₹1,085 - ₹1,105
Stoploss ₹935 (CLS)

Kirloskar Oil Engines Ltd (KOEL) is the flagship company of the Kirloskar Group and is recognised as a leader in the manufacture of diesel engines, generators, agricultural pump sets and water-solutions equipment. With four state-of-the-art manufacturing plants in India, KOEL has a strong global presence in the Middle East, Africa, USA and other markets. The company also emphasises sustainability and innovation, offering engines that run on alternative fuels like biodiesel, natural gas and invests heavily in energy efficiency, quality and global standards. The September quarter witnessed DIIs increasing their stake in the company to 28 per cent, reflecting rising institutional confidence in its growth prospects and consistent operational performance. Recently, shares of Kirloskar Oil Engines Ltd witnessed a strong rally accompanied by a sharp rise in trading volumes after a period of subdued performance. Considering the potential upside of around 20 per cent from current levels towards its previous 52-week high, we recommend BUY.

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