Large-Cap Auto Stocks That May Still Offer Value

Published on: 11 May 2026 Last Updated on: 19 May 2026
Auto sector stocks India

While mid- and small-cap stocks often dominate the headlines, India's large-cap auto stocks have been quietly experiencing an earnings revival.

After being caught in the middle of EV uncertainty, margin squeeze, and global headwinds over the past couple of years, some large-cap auto stocks are now trading at valuations that seem attractive to investors.

In this blog, we will take a look at some large-cap auto stocks that are currently trading at a discounted valuation and may be worth a closer look in 2026.

Why Auto Sector Stocks India May Offer Value Now?

The Indian automobile industry is the third-largest by volume in the world. It is currently in a new supercycle, which includes:

  • Rising ambitions,
  • Increasing rural income,
  • Premiumization of the passenger vehicle segment,
  • An emerging EV ecosystem.

However, despite a recovery in profits, most large-cap automobile stocks are still trading at a PE multiple below their historical average.

This is making them attractive for investors seeking undervalued large-cap auto sector stocks India. Here are some undervalued large-cap auto sector stocks India:

A. Maruti Suzuki

Maruti Suzuki is the largest passenger vehicle manufacturer in India. Currently, Maruti Suzuki's share price is trading at a P/E of 28.4x, much below its historical average, despite its record-breaking earnings this year.

As per the annual results released for the March FY25-26 period, Maruti has registered its highest-ever net sales of ₹174369.5 million, up 20.2% YoY, and its highest-ever net profit of ₹144454 million in FY25-26.

Furthermore, given the company's robust cash flows, the board has recommended its highest-ever dividend of ₹140 per share.

As Maruti Suzuki begins exporting its first EV, the e-VITARA, to 44 countries, its stock presents an attractive investment opportunity.

B. Mahindra & Mahindra

Mahindra & Mahindra is one of the best-performing Indian large-cap auto sector stocks in India over the past 5 years.

This comes with a return of 299.88%. Moreover, its stock is currently trading at a P/E of 23.20x.

Moreover, Mahindra & Mahindra leads the SUV segment in India with a 24.1% market share, up 90 bps as per Q3FY26 results.

As per the Q3FY26 results, its consolidated revenue stood at ₹52,100 crore. It also includes a 26% Y-o-Y increase, and its consolidated PAT rose 54% to 4,675 crore.

The annualized ROE stood at a high 20.1%, indicating that capital was effectively utilized across its auto, farm equipment, and services businesses.

Furthermore, this presents an attractive investment opportunity.

C. Tata Motors

Tata Motors is one of the undervalued large-cap stocks that have corrected substantially from their previous highs and are available at a valuation where re-rating is expected.

According to the latest quarterly results, the commercial vehicle segment has shown stable growth in the first few months of 2026.

According to Tata Motors’ Q3 FY26 results, the revenue from operations jumped 16% year-on-year to ₹21,847 crore, while the operating margin rose to 12.60% from 12.07% during the same period of the previous year.

Furthermore, it stated that the company's focus remains on product development, cost reduction, and execution excellence, rather than on the near-term margin pressures.

Wrapping It Up!

Although large-cap automobile stocks in India are witnessing cyclical and structural growth, this is not reflected in their valuations.

These stocks are from companies at the forefront of innovation, with scale, and well-positioned to benefit from the next growth wave in the Indian automobile industry.

These stocks are attractive not only for their earnings recovery but also for their discounted valuations. Given the robust rise in demand for automobiles driven by rising disposable incomes, rural growth, and the need for mobility, these auto sector stocks India offer investors the potential for attractive returns.

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reputation management pr

The Moment Public Relations Services Became a Reputation Tool, Not Just a Media Tool

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Unique gifts in corporate sector

Discover Exceptional, Unique Corporate Gifts That Will Leave A Lasting Impression

When I used to work a 9-5 job at a moderately large company. I was always trusted with the selection of unique corporate gifts. I always had a very good knowledge of choosing gifts. But when it came to selecting gifts in the corporate sector, I found myself to be even better! Many years later, I do the same when it comes to selecting gifts in my own company. Now, what do I know that makes me so good at this?  This is exactly what I will tell you today. Firstly, you must understand the essence behind the unique gifts in corporate sector. These acts can increase reciprocity. Additionally, it also promotes a positive feedback loop. Here, recipients feel inclined to respond positively to the giver's gestures. Moreover, I am always very careful about the environment in which a gift is presented. 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How does offside work in football

Offside In Football: Complete Guide To The Rule, VAR And Modern Interpretations

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