Jefferies favours two-wheeler stocks over four-wheeler stocks as earnings gap widens

Synopsis Jefferies prefers two-wheeler stocks over passenger vehicle makers, citing stronger volume growth, resilient margins and improving earnings. TVS Motor Company and Eicher Motors remain its top picks, while Tata Motors Passenger Vehicles and Hyundai Motor India carry Underperform ratings amid rising competition, higher discounts and a weaker earnings outlook. Jefferies has maintained a constructive view on India’s automobile sector while firmly preferring two-wheeler manufacturers over passenger vehicle makers, citing a widening divergence in profitability and pricing power. Top picks and rating downgrades Jefferies’ India autos team has highlighted TVS Motor Company and Eicher Motors as its top “Buy” picks…