Brokerage firm Citi has initiated coverage on Tenneco Clean Air India Ltd. with a 'Buy' rating and a price target of ₹650 per share. According to reports from CNBC TV18, this price target implies a potential upside of 26% from current market levels. The stock was in focus on Wednesday, April 1, following this brokerage initiation.
Tenneco Clean Air India, part of the Tenneco Group, operates across two key segments - clean air and powertrain solutions (CAPT), and advanced ride technologies (ART), which includes shock absorber components. As reported by CNBC TV18, the company's diversified business model spans multiple automotive components and technologies.
According to Citi's analysis reported by CNBC TV18, the company's key organic growth drivers include premiumisation in India's passenger and commercial vehicle segments, stricter emission norms, new order wins, and a potential shift in orders from Tenneco's global plants to India. These factors position the company to benefit from evolving automotive industry trends and regulatory changes.
Shares of Tenneco Clean Air India ended Monday's session 3.23% lower at ₹514.50 and have declined around 8% over the past one month, as reported by CNBC TV18. Despite recent volatility, the stock remains within the brokerage's target range, suggesting potential recovery based on the positive analyst coverage.
Of the five analysts that have coverage on Tenneco Clean Air India, four of them have a 'Buy' rating, while one has a 'Sell' recommendation on the stock, according to CNBC TV18. This consensus among analysts, with four out of five maintaining positive ratings, indicates broad market confidence in the company's prospects despite identified risks.
