Hero Motors, SML Mahindra, Wheels India Stocks Fall, Hit 10% Lower Circuits

Shares of prominent automobile and auto parts companies Hero Motors, SML Mahindra, and Wheels India were all locked at their 10 per cent lower circuit limits on the Bombay Stock Exchange (BSE) during Wednesday’s intraday trading session. This drop came alongside a broader decline in the equity markets, with the BSE Sensex falling 0.76 per cent to 73,293.54 as of 2:28 PM.

Hero Motors saw its stock price fixed at ₹122.70, marking a 10 per cent drop on the BSE. The stock experienced heavy trading volume, with 21.56 million shares changing hands and pending sell orders totaling roughly 2.5 million shares across the National Stock Exchange (NSE) and BSE. This decline pushed Hero Motors’ market price down by 31 per cent from its post-listing peak of ₹179, which was reached on October 5, 2026.

Since its initial public offering (IPO) on September 23, 2026, when the stock had a 52-week low of ₹80.50, Hero Motors has maintained a price 46 per cent higher than its issue price of ₹84 per share. The company specializes in manufacturing and supplying automotive components, including gearboxes and continuously variable transmissions, primarily targeting the two-wheeler and electric bicycle markets.

Looking ahead, industry analysts from Crisil Ratings project steady revenue growth for Hero Motors over the medium term. This growth is expected to be driven by a mid-teen expansion rate in the powertrain segment alongside consistent contributions from its alloy and metal business. The powertrain segment is anticipated to increase its share of overall revenue in the coming years. Further revenue gains are also expected from new product launches, scaling of subsidiaries, and an expanding footprint in the electric mobility sector.

Despite these positive outlooks, Hero Motors operates in a sector heavily influenced by cyclical demand patterns. Factors such as consumer disposable income, rural and urban consumption trends, credit availability, fuel price fluctuations, regulatory changes, and broader economic conditions can all impact order volumes. The company has diversified its customer base across various regions and product lines, but the top five customers still represent around 60 to 65 per cent of its revenue, indicating moderate customer concentration risk.

Meanwhile, SML Mahindra’s shares also fell sharply, hitting the 10 per cent lower circuit at ₹5,514.75 on the BSE. The company reached a record high of ₹6,908.80 on September 28, 2026, contrasting with a 52-week low of ₹2,700.15 recorded on October 21, 2025. SML Mahindra manufactures commercial vehicles, including buses, trucks, and specialized application vehicles, serving a diverse clientele that includes fleet operators, educational institutions, government agencies, and transport companies across domestic and international markets.

In its financial results for the second quarter of the 2026-27 fiscal year (July to September 2026), SML Mahindra reported a 44 per cent year-on-year drop in net profit after tax to ₹11.70 crore. This profit decline was attributed to increased raw material costs. However, revenue from operations grew by 20.6 per cent year-on-year, reaching ₹669.79 crore, while raw material expenses increased by 16.8 per cent to ₹523.34 crore.

Wheels India also found its shares capped at the 10 per cent lower circuit, closing at ₹2,194.30 on the BSE. The stock recently hit a 52-week high of ₹2,511.50 on October 19, 2026, with its lowest price in the last year being ₹705.05 on January 27, 2026. On August 19, 2026, the company’s board approved a preferential issue of shares on a private placement basis, aimed at raising ₹180 crore. The allotment consists of up to 1.269 million equity shares with a face value of ₹10 each, priced at ₹1,418 per share. The investors involved include TSF Investments and individuals Srivats Ram, Nivedita Ram, and Gita Ram.

This series of developments comes amid a fluctuating auto sector where companies face challenges from rising input costs and shifting demand patterns. Investors are closely monitoring these firms as they navigate the complex interplay of economic conditions and industry trends. The performance of stocks like Hero Motors, SML Mahindra, and Wheels India offers insight into the health of the automotive components and commercial vehicle manufacturing segments, both crucial to the broader automotive ecosystem.