Stocks To Buy: Citi bets on this auto components supplier for 26% upside

Shares of Tenneco Clean Air India Ltd. are trading 6% higher on Wednesday, April 1, after brokerage firm Citi initiated coverage on the stock with a 'Buy' rating.

The brokerage has a price target of ₹650 per share, implying a potential upside of 26% from current levels.

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.

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According to Citi, 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.

However, the brokerage has cited risks such as high exposure to internal combustion engine (ICE) powertrains, volatility in raw material prices, and potential delays in the implementation of emission-related regulations such as CAFÉ, BS-7, and TREM-V.

Of the five analysts that have coverage on Tenneco Clean Air, four of them have a 'Buy' rating, while one has a 'Sell' recommendation on the stock.

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.

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