Bharat Seats Soars 20%: Tradeswift's Sandeep Jain Sees Long-Term Upside

A smallcap stock began the week on a strong note, soaring almost 20 per cent in intraday trading—its biggest surge since May 7—after the company, an automotive part maker, staged a strong financial performance for the final three months of 2025. Many analysts remain upbeat about the stock with some targets suggesting a further upside over the long term.

Bharat Seats (BHARATSE) shares rocketed as much as 19.8 per cent during Monday's session, coming within Rs 45 of their all-time high scaled in mid-October last year.

Tradeswift's Sandeep Jain bullish on Bharat Seats

Sandeep Jain, Director at Tradeswift Broking, said the stock looks good fundamentally as well as on the technical charts. Bharat Seats belongs to the same group as Sharda Motors and NDR Auto Components, with a strong promoter holding, he said, referring to the Rohit Relan Group.

At the end of the December quarter, promoters held a 74.66 per cent stake in the company, including Maruti Suzuki India's 14.81 per cent shareholding.

4 major long-term triggers for auto sector companies

According to Jain, there are four major fundamental tailwinds for companies operating in or related to the auto space:

- US tariff cuts - Income tax cuts - GST 2.0 cuts - Repo rate cuts

Lower tariffs a big positive for auto companies

With the US-India trade deal in place, most analysts are upbeat about auto part export costs, also strengthening the auto space as a whole. Jain believes that this is one of the major positive triggers for the stock.

Income tax cuts led to higher purchasing power

Income tax relief from Budget 2025 improved disposable income for individual tax assessees, improving their consumer spending on vehicles across segments.

GST 2.0 cuts a major boost

In September last year, the government announced a series of GST rate cuts while also reducing the number of slabs under the indirect tax regime to spur consumption. Analysts say this is set to underpin demand for the next few years to come while prompting major auto makers to reduce vehicle prices.

Benchmark rate cuts

The auto sector is a rate-sensitive space, as lower borrowing costs can significantly boost sales. This has been another positive factor for Bharat Seats and other auto companies.

Bharat Seats fundamentally strong: Sandeep Jain

Citing strong fundamentals, Jain pointed out that Bharat Seats' return on capital employed (RoCE) stands at 15-16 per cent with a three-year profit CAGR of around 40 per cent. He also said that the company's quarterly performance was good. The stock also looks technically strong, trading above its 200-day moving average (DMA), he said, adding that it offers a favourable risk reward.

Bharat Seats, Sandeep Jain's long-term pick, target at Rs 210

Jain recommends buying the stock around Rs 162 for a target of Rs 210. His target implies a 28.8 per cent upside from Friday's close.