Hero MotoCorp, Maruti Suzuki and Larsen & Toubro were among gainers in today's session. Indian markets faced selling pressure on Thursday with NSE Nifty ending the session 211 points lower. Indian markets are facing selling and investors are cautious at the moment as Indian Government hasn't managed to secure a favorable trade deal with the US Government. Markets could face consolidation for a few more sessions till the time we have clarity about tariff deal with the US Government. As majority of stocks closed today's session lower, very few stocks managed to close the trade in the green territory. Hero MotoCorp capitalizes on favorable macroeconomic conditions and GST rationalization prospects, achieving a stellar 20% monthly gain. Larsen & Toubro delivers exceptional financial performance with 30% profit growth, backed by robust order inflows and strategic green energy partnerships. Meanwhile, Maruti Suzuki pioneers India's electric vehicle transition with the launch of its first all-electric SUV, the e-Vitara, while strengthening its supply chain through localized battery manufacturing initiatives. TopNews Team has reviewed technical levels and latest news for the buzzing stocks.

Hero MotoCorp: Riding the Wave of Recovery

The two-wheeler giant has emerged as one of August's standout performers, with its stock price climbing an impressive 20% during the month, substantially outpacing both broader market indices and sector peers. This remarkable surge culminated on August 18, 2025, when Hero MotoCorp touched a nine-month peak of ₹5,096.55 on the Bombay Stock Exchange, reflecting renewed investor confidence in the company's prospects.

The catalyst behind this momentum stems largely from growing optimism surrounding potential GST rationalization measures, which market participants believe could significantly stimulate demand for motorcycles and scooters. This policy expectation, combined with improving macroeconomic fundamentals, has created a favorable backdrop for the industry's largest player.

Hero MotoCorp's first-quarter FY26 results, announced on August 6, 2025, painted a picture of operational stability amid challenging market conditions. The company reported a net profit of ₹1,125.7 crore, representing a modest year-over-year increase, while revenue declined to ₹9,578.9 crore, down 5.6% from the previous year. This revenue contraction primarily reflected broader volume weakness across the industry, with unit sales falling 10.9% to 13.67 lakh vehicles.

Despite these headwinds, Hero MotoCorp demonstrated remarkable operational resilience, maintaining its EBITDA margin at a stable 14.4%. This performance underscores the company's ability to navigate cost pressures and market volatility while preserving profitability—a critical attribute that has not gone unnoticed by institutional investors.

The company's strategic diversification into electric vehicles through its VIDA brand represents another compelling growth narrative. While still in its nascent stages, the EV segment is beginning to contribute meaningfully to Hero's product portfolio, positioning the company to capitalize on India's inevitable transition toward sustainable mobility solutions.

Recent trading sessions have shown some volatility, with the stock fluctuating between ₹5,130 and ₹5,175 around August 27-28, yet the overall trajectory remains decidedly positive. This price action reflects the delicate balance between immediate market sentiment and longer-term structural optimism about the sector's recovery prospects.

Analyst Confidence and Strategic Outlook

Axis Securities has emerged as a prominent advocate for Hero MotoCorp's investment thesis, issuing a comprehensive analysis in August 2025 that highlights three critical areas for investor monitoring. First, the brokerage emphasizes Hero's roadmap in electric vehicle products, recognizing the strategic imperative of establishing a strong foothold in this rapidly evolving segment. Second, they point to the company's positioning in the mid-weight motorcycle category, where intensifying competition demands innovative product development and aggressive marketing strategies.

Third, Axis Securities underscores the importance of Hero's international expansion initiatives, which could unlock significant value through geographic diversification and market share gains in emerging economies. These strategic pillars form the foundation of what analysts believe could be a multi-year growth cycle for the company.

The brokerage's optimism extends to broader macroeconomic factors that could serve as powerful tailwinds for the two-wheeler industry. They specifically cite low inflation rates, recent RBI interest rate cuts, favorable monsoon predictions, and government initiatives aimed at boosting rural incomes as supportive elements likely to stimulate demand across Hero's core markets.

From a financial forecasting perspective, Axis Securities projects an impressive 13-14% EBITDA compound annual growth rate (CAGR) for Hero MotoCorp from FY25 to FY28, reflecting confidence in the company's ability to capitalize on improving market conditions. This earnings growth trajectory has led the brokerage to maintain a "BUY" rating with a target price of approximately ₹5,220, suggesting roughly 12% upside potential from current trading levels.

Valuation metrics provide additional context for Hero's investment appeal. The stock currently trades at a price-to-earnings ratio of 22.5 times trailing twelve-month earnings, with a price-to-book ratio of 5.3 and a price-to-sales multiple of 2.52. While these metrics indicate a moderately premium valuation, they remain consistent with Hero's market leadership position and demonstrated financial resilience.

Larsen & Toubro: Infrastructure Excellence Drives Performance

Larsen & Toubro has delivered one of the most compelling financial performances among large-cap industrial stocks, with its first-quarter FY26 results showcasing the company's operational excellence and strategic positioning. The engineering and construction conglomerate reported a consolidated net profit surge of 30% year-over-year to ₹3,617 crore, while revenue expanded by a robust 16% to ₹63,679 crore.

Perhaps more importantly for long-term investors, L&T secured new contracts worth an impressive ₹94,453 crore during the quarter, primarily driven by strong performance in its Projects & Manufacturing business segment. This substantial order book expansion provides visibility into future revenue streams and demonstrates the sustained demand for infrastructure and industrial projects across India's rapidly developing economy.

The company's stock performance has reflected this operational strength, with L&T emerging as one of the top gainers on the Nifty 50 index on August 27, 2025. Trading at ₹3,572.90, the stock gained 0.89% on the day, reflecting positive market sentiment regarding the company's execution capabilities and growth outlook amid an improving industrial environment.

Second-quarter performance has maintained this positive momentum, with revenue reaching ₹63,678.92 crore and net profit climbing to ₹4,325.57 crore—both figures showing encouraging year-over-year growth trends. This consistency in financial delivery has become a hallmark of L&T's operational approach, providing investors with confidence in the company's ability to navigate complex project cycles and market conditions.

A significant strategic development involves ongoing negotiations between Torrent Power and L&T regarding the potential acquisition of the latter's thermal business. This transaction could unlock substantial value for L&T shareholders while allowing the company to sharpen its focus on core engineering and construction segments where it maintains competitive advantages.

Strategic Partnerships and Capital Efficiency

L&T's commitment to sustainable infrastructure has gained particular attention through its recent partnership with Japan's ITOCHU Corporation for a green ammonia project. This collaboration underscores the company's strategic pivot toward renewable energy and sustainable industrial solutions, positioning L&T to capitalize on India's ambitious climate commitments and the global transition toward clean energy.

From a financial analysis perspective, Simply Wall St has highlighted L&T's impressive fundamental metrics, particularly its 15% Return on Capital Employed (ROCE), which demonstrates robust capital efficiency and aligns favorably with industry benchmarks. The research firm characterizes L&T as a "growing compounding machine" due to its increasing capital deployment and improving returns—attributes that make it particularly attractive for long-term investors seeking exposure to India's infrastructure development story.

Market expectations remain decidedly positive, with some analyst forecasts suggesting maximum price targets around ₹4,550, representing significant upside potential from current levels. This optimism stems from continued strong order inflows, improving earnings estimates, and L&T's diversification into high-growth sectors such as renewable energy and advanced manufacturing.

The company's volatile but ultimately upward trajectory can be attributed to its involvement in marquee projects across green energy and industrial sectors. These initiatives not only provide immediate revenue opportunities but also establish L&T as a key player in India's infrastructure modernization efforts, potentially leading to sustained competitive advantages and market share gains.

Maruti Suzuki: Leading India's Electric Revolution

Maruti Suzuki has marked a historic milestone in India's automotive industry with the launch of its first all-electric SUV, the e-Vitara, on August 26, 2025. The vehicle's official unveiling by Prime Minister Narendra Modi at the company's Gujarat manufacturing facility underscores the strategic significance of this launch, both for Maruti and for India's broader electric vehicle adoption goals.

The e-Vitara represents a technological leap forward for Maruti, featuring multiple battery configurations that deliver a range exceeding 500 kilometers, advanced digital cockpit systems, comprehensive ADAS (Advanced Driver Assistance Systems) technologies, and a premium interior design. These specifications position the e-Vitara as a competitive offering in India's rapidly evolving battery electric vehicle market while also serving export opportunities in international markets.

Beyond vehicle production, Maruti has inaugurated a state-of-the-art battery components manufacturing facility in Gujarat, developed in strategic collaboration with technology partners Toshiba and Denso. This facility focuses on hybrid battery electrode manufacturing with an impressive 80% localization rate, a achievement that should significantly strengthen Maruti's electric vehicle supply chain resilience and cost competitiveness over the medium to long term.

The timing of these developments coincides with Maruti's aggressive promotional strategy across its conventional vehicle portfolio. The company is offering attractive discounts on popular models including the Jimny, Swift, WagonR, Invicto, and Grand Vitara throughout August, strategically positioning itself ahead of India's crucial festive season sales period. This approach demonstrates Maruti's ability to balance immediate market share objectives with longer-term strategic investments in electric mobility.

Market Positioning and Analyst Perspectives

Nomura analysts have published a nuanced assessment of Maruti's electric vehicle strategy, projecting strong export momentum that could drive volume growth of 415,000 units in FY26—representing an impressive 25% increase from current levels. This export-focused approach could prove particularly valuable as global markets increasingly demand affordable, reliable electric vehicles from established automotive manufacturers.

However, analyst caution persists regarding several execution risks. The e-Vitara's pricing strategy relative to competitive offerings remains a critical concern, as premium positioning could potentially limit adoption rates among cost-conscious Indian consumers. Additionally, analysts have identified foreign exchange volatility, demand fluctuation risks, and the overall execution pace of Maruti's battery electric vehicle transition as key monitoring points for investors.

From a valuation standpoint, Maruti Suzuki currently trades at a price-to-earnings ratio of 32.43, with a price-to-book ratio of 4.82 and a price-to-sales multiple of 2.98. While these metrics indicate premium valuation territory, they reflect investor confidence in the company's market dominance and growth prospects across both traditional internal combustion engine vehicles and emerging electric vehicle segments.

The company's strategic approach to electric vehicle development—combining domestic manufacturing capabilities with international technology partnerships—represents a measured response to market transition risks. Rather than abandoning its core competencies in affordable vehicle manufacturing, Maruti appears to be leveraging these strengths while gradually building electric vehicle expertise.