Two-Wheeler Stocks – Best Two-Wheeler Stocks in India

Two-wheeler stocks refer to shares of companies that manufacture and sell motorcycles, scooters, and other two-wheeled vehicles. These stocks can offer investment opportunities due to increasing urbanization, rising disposable incomes, and a growing demand for efficient personal transportation, making them an attractive option for investors in the automotive sector.

The table below shows the best two-wheeler stocks in India based on their highest market capitalisation and 1-year returns.

Introduction To Two-Wheeler Stocks

Bajaj Auto Ltd

The Market Cap of Bajaj Auto Ltd is Rs. 302,438.78 crores. The stock’s monthly return is 14.04%. Its one-year return is 131.22%. The stock is 2.99% away from its 52-week high.

Bajaj Auto Limited, an India-based company, specializes in the manufacturing of two-wheelers, three-wheelers, and quadricycles. The company is involved in the development, production, and distribution of various automobiles, including motorcycles, commercial vehicles, electric two-wheelers, and components. 

It operates in segments such as Automotive, Investments, and Others. The motorcycle lineup comprises models such as Boxer, CT, Platina, Discover, Pulsar, Avenger, KTM, Dominar, Husqvarna, and Chetak. The commercial vehicle range includes Passenger Carriers, Good Carriers, and Quadricycles. Geographically, the company operates in India and other regions worldwide. Its manufacturing plants are located at Waluj, Chakan, and Pantnagar.  

TVS Motor Company Ltd

The Market Cap of TVS Motor Company Ltd is Rs. 130,758.23 crores. The stock’s monthly return is 9.79%. Its one-year return stands at 86.85%. The stock is currently 3.91% away from its 52-week high.

TVS Motor Company Limited manufactures motorcycles, scooters, mopeds, three-wheelers, parts, and accessories. The company’s motorcycle lineup features models such as Apache Series RTR, Apache RR 310, Apache RTR 165RP, TVS Raider, TVS Radeon, TVS StaR City +, and TVS Sport. 

Additionally, it offers electric vehicles like the TVS iQube. Customers can access the TVS Augmented Reality Interactive Vehicle Experience (ARIVE) mobile application to explore detailed information about the TVS Apache series motorcycles, book test rides, and make purchases.  

Eicher Motors Ltd

The Market Cap of Eicher Motors Ltd is Rs. 130,247.35 crores. The stock’s monthly return is 2.02%, while its one-year return is 40.14%. Additionally, the stock is 6.45% away from its 52-week high.

Eicher Motors Limited is an automotive company based in India. The company manufactures and sells motorcycles, and spare parts, and offers related services within the automotive segment. Its flagship brand, Royal Enfield, is known for its motorcycle products such as Interceptor 650, Continental GT 650, Classic, Bullet, and Himalayan. 

Royal Enfield also provides apparels and motorcycle accessories, including protective riding gear, accessories, seats, bodywork, controls, wheels, luggage, and engines. In the commercial vehicle sector, Eicher Motors operates through its subsidiary, VE Commercial Vehicles, in a joint venture with AB Volvo under VECV, offering a range of Eicher-branded trucks and buses.

Hero MotoCorp Ltd

The Market Cap of Hero MotoCorp Ltd is Rs. 114,863.58 crores. The stock’s monthly return is 9.75%. Its one-year return is 95.50%. The stock is currently 2.63% away from its 52-week high.

Hero MotoCorp Limited is involved in the development, production, marketing, sales, and distribution of two-wheelers and related components. The company’s range of products includes motorcycles, scooters, and parts. 

Additionally, the company offers a variety of accessories like helmets, seat covers, and tank pads. Hero MotoCorp operates eight manufacturing facilities, with six located in India and one in Colombia and Bangladesh each. Subsidiaries of the company include HMCL Americas Inc. USA, HMCL Netherlands B.V., and HMC MM Auto Limited.

Maharashtra Scooters Ltd

The Market Cap of Maharashtra Scooters Ltd is Rs. 11,507.71 crores. The stock’s monthly return is 13.29%. Its one-year return is 33.52%. The stock is 1.75% away from its 52-week high.

Maharashtra Scooters Limited, an investment firm headquartered in India, has two main operating segments: Manufacturing and Investments. The company primarily manufactures pressure die casting dies, jigs, and fixtures for the two and three-wheeler industry. Its subsidiary is Bajaj Holdings and Investment Ltd.

Atul Auto Ltd

The Market Cap of Atul Auto Ltd is Rs. 1,895.69 crores. The stock’s monthly return is 4.68%. Its one-year return is 10.74%. The stock is 23.61% away from its 52-week high.

Atul Auto Limited is involved in the production and sale of three-wheeler vehicles as well as spare parts for such vehicles. The company’s brands consist of various models such as ATUL RIK, ATUL Gem, ATUL GEMINI, ATUL Elite, ATUL Smart (Atul Smart Aqua), and ATUL Shakti (Cargo Diesel). These vehicles are utilized for various purposes such as carrying milk cans, water bottles, bakery products, edible oil tins, gas cylinders, electronics, home appliances, vegetables, bakery items, pizzas, and ice cream.  

Wardwizard Innovations & Mobility Ltd

The Market Cap of Wardwizard Innovations & Mobility Ltd is Rs. 1,413.74 crores. The stock’s monthly return is 3.16%. Its one-year return is 25.65%. The stock is 59.51% away from its 52-week high.

Wardwizard Innovations & Mobility Limited is an Indian company that specializes in auto manufacturing. The company operates across three segments: Joy E-Bike, Vyom Innovations, and the Sale of Services. It is involved in producing motorcycles, scooters, mopeds, and their engines. 

Additionally, the company trades in home appliances, white goods, and digital business support services. Under the VYOM brand, Wardwizard offers a variety of electronic appliances, including air conditioners, refrigerators, LED TVs, portable air conditioners, air purifiers, alkaline water purifiers, and hydrogen water bottles.  

What are Two-Wheeler Stocks?

Two-wheeler stocks refer to shares of companies that manufacture motorcycles and scooters. These companies are often involved in producing not only the vehicles but also their components. 

Investing in two-wheeler stocks allows investors to engage with the growing demand for personal transportation solutions in various markets.  The performance of two-wheeler stocks can be influenced by several factors, such as consumer preferences, economic conditions, and fuel prices.  

Features Of Two-Wheeler Stocks

The key feature of two-wheeler stocks is Market Resilience. Two-wheeler stocks often demonstrate resilience during economic fluctuations. Their affordability compared to four-wheelers attracts consumers even in downturns, maintaining steady sales and revenue, which supports long-term profitability and market confidence.

1. Growing Demand: The growing demand for two-wheelers, particularly in developing countries, is fueled by urbanization and changing lifestyles. This trend ensures sustained market growth as more consumers seek affordable and convenient transportation options.
2. Technological Advancements: Innovations such as electric two-wheelers and advanced safety features enhance the appeal of these vehicles. Companies investing in technology not only meet regulatory standards but also attract environmentally-conscious consumers, boosting their market share.
3. Diverse Product Range: Manufacturers offer a diverse range of products catering to different consumer preferences, including scooters, motorcycles, and electric models. This variety helps companies tap into various segments of the market, ensuring broader customer reach and increased sales.
4. Strong Export Potential: Many two-wheeler manufacturers have established a strong export presence, particularly in emerging markets. This not only diversifies their revenue streams but also mitigates risks associated with domestic market fluctuations, enhancing overall stability and growth prospects.

Best Two-Wheeler Stocks Based On 6 Month Return

The table below shows the best two-wheeler stocks based on 6-month return.

Top Two-Wheeler Stocks In India Based On 5 Year Net Profit Margin

The table below shows the top two-wheeler stocks in India based on 5-year net profit margin.

Best Two-Wheeler Stocks Based On 1m Return

The table below shows the best two-wheeler stocks based on a 1-month return.

High Dividend Yield Two-Wheeler Stocks In India

The table below shows the top two-wheeler stocks in India based on dividend yield.

Historical Performance Of Best Two-Wheeler Stocks

The table below shows the historical performance of the best two-wheeler stocks based on 5-year CAGR.

Factors To Consider When Investing In Two-Wheeler Stocks India

The factor to consider when investing in two-wheeler stocks is the market demand, which significantly influences company performance. Understanding consumer preferences and trends helps investors gauge potential growth and stability in the sector.

1. Market Trends: Assessing current market trends is essential for investors. The shift towards electric vehicles (EVs) is growing, as consumers seek eco-friendly options. Companies innovating in this space are likely to outperform traditional manufacturers, offering promising investment opportunities.
2. Regulatory Environment: The regulatory framework governing the automotive sector can greatly impact two-wheeler companies. Government policies on emissions, safety standards, and subsidies for electric vehicles influence manufacturing costs and pricing strategies, which investors should monitor closely for potential risks and rewards.
3. Competitive Landscape: Understanding the competitive dynamics within the two-wheeler market is crucial. Key players, market share distribution, and product offerings affect profitability. Investors should analyze competitors’ strengths and weaknesses to identify which companies are best positioned for growth and market leadership.
4. Consumer Behavior: Consumer preferences play a pivotal role in shaping the two-wheeler market. Factors like fuel efficiency, pricing, and brand loyalty influence buying decisions. Investors should stay informed about changing consumer trends to make well-timed investment decisions in the sector.
5. Financial Performance: Evaluating a company’s financial health is vital when investing in two-wheeler stocks. Key metrics such as revenue growth, profit margins, and debt levels provide insights into operational efficiency. Investors should look for companies with strong financial fundamentals and sustainable growth prospects.

How To Invest In Best Two-Wheeler Stocks?

To invest in the best two-wheeler stocks, start by researching companies with strong fundamentals and growth potential. Utilize platforms like Alice Blue for seamless trading and real-time market analysis. Focus on long-term trends in the two-wheeler industry and consider factors like consumer demand, innovation, and economic conditions to make informed investment decisions.

Impact Of Market Trends On Two-Wheeler Stocks

Market trends significantly influence two-wheeler stocks, shaping investor sentiment and company performance. As consumer preferences shift towards electric vehicles and eco-friendly options, companies that adapt quickly can gain a competitive edge, boosting their stock values. 

Additionally, fluctuations in fuel prices can impact demand for traditional bikes, leading to varied sales figures. Investors closely monitor these trends, as they directly correlate with profitability.

Economic conditions also play a crucial role; during economic downturns, discretionary spending on two-wheelers may decrease, affecting overall market performance. Companies that diversify their offerings often mitigate these risks effectively.

How Do Two-Wheeler Stocks Perform In Volatile Markets?

Understanding their performance can reveal insights into the resilience of the automotive sector.   In times of market volatility, two-wheeler stocks may experience fluctuations due to factors like consumer demand, economic stability, and raw material prices.

Investors often watch these stocks closely, as their movement can indicate broader economic trends. Analyzing their behavior during turbulent periods can provide valuable information for portfolio management and investment strategies.

Benefits Of Best Two-Wheeler Stocks

The primary benefit of the Best Two-Wheeler Stocks is Market Demand. The demand for two-wheelers is consistently strong, particularly in emerging markets.  

1. Fuel Efficiency: Two-wheelers are known for their excellent fuel efficiency compared to cars, making them cost-effective choices for consumers. This aspect not only attracts buyers but also contributes to lower carbon emissions, appealing to environmentally conscious consumers.
2. Government Support: Many governments provide incentives for two-wheeler purchases, such as subsidies or tax breaks. This support encourages consumers to opt for two-wheelers over other modes of transport, further enhancing market growth and the profitability of manufacturers.
3. Technological Advancements: The two-wheeler industry is evolving with advancements in technology, including electric vehicles (EVs) and smart features. Companies that embrace innovation position themselves favorably in the market, attracting tech-savvy consumers and improving operational efficiency.
4. Export Opportunities: With growing demand in international markets, two-wheeler manufacturers have significant export potential. This expansion into new markets can enhance revenue streams and diversify risks, contributing to overall financial stability and growth for investors.

Risks Of Investing In Two-Wheeler Stocks In India

The main risk of investing in two-wheeler stocks in India is the volatility of consumer demand. Economic fluctuations can significantly impact consumer purchasing power, leading to unpredictable sales, which affects stock performance and investor confidence.

1. Regulatory Changes: Frequent changes in government policies, including emissions standards and import tariffs, can impose unexpected costs on manufacturers, affecting their profitability and stock prices, and creating uncertainty for investors.
2. Competition: The two-wheeler market is highly competitive, with numerous players. Increased competition can lead to price wars, reducing profit margins and making it challenging for companies to maintain market share and attractive stock valuations.
3. Supply Chain Disruptions: Issues such as raw material shortages or logistical challenges can hinder production. These disruptions can lead to delays in deliveries and affect sales targets, negatively impacting stock performance and investor sentiment.
4. Technological Advancements: Rapid changes in technology, such as electric vehicle adoption, require companies to innovate continuously. Failure to keep pace with technological trends can result in lost market opportunities and declining stock value.
5. Market Saturation: In mature markets, high penetration rates may lead to reduced growth potential. Companies may struggle to expand their customer base, which can stifle revenue growth and result in stagnant or declining stock prices.

Who Should Invest In Two-Wheeler Stocks?

Investing in two-wheeler stocks can be a smart choice for various types of investors. These stocks offer opportunities in a growing sector, driven by rising urbanization and changing consumer preferences. Here are some groups that may benefit from this investment:

1. Long-Term Investors: Those looking for stable returns over time can find two-wheeler stocks appealing, as the demand for motorcycles and scooters continues to grow. This sector typically shows resilience, making it a solid addition to a long-term portfolio.
2. Growth-Oriented Investors: Investors seeking growth potential should consider two-wheeler stocks, particularly in emerging markets. The increasing popularity of two-wheelers as an affordable transportation option bodes well for companies in this industry, suggesting significant upside potential.
3. Value Investors: Value investors looking for undervalued stocks may find opportunities in the two-wheeler sector. Economic fluctuations can lead to price corrections, allowing savvy investors to purchase stocks at lower valuations with strong fundamentals.

FAQs – Two-Wheeler Stocks In India

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.