Auto Stocks Outlook for the week – 24 to 28.07.2017
Auto Stocks Outlook for the week – 24 to 28.07.2017
( www.rupeedesk.in )
Stocks of most automobile companies are set to rise next week on the back of expected bullishness
in heavyweight stocks such as Maruti Suzuki India Ltd and Eicher Motors Ltd. Maruti Suzuki and Eicher Motors are expected to post good results for the quarter ended June, Maruti Suzuki's volumes have grown by nearly 13.2% on year to around 395,000 units due to strong domestic demand and this could lift the topline 18.6% on year to 176.97 bln rupees. The average selling price of vehicles is likely to rise by nearly 1% on quarter due to more demand for premium cars of the company and operating margin is also expected to expand 20 basis points on quarter to 14.2%. Strong positive outlook for premium motorcycle maker Eicher Motors on the back of a sustained demand for its high-margin products. The company plans to add nearly 300 dealers till March 2019, and this, coupled with the launch of two new motorcycles, should result in demand remaining strong for another two years. India's largest two-wheeler maker Hero MotoCorp Ltd will report earnings on Tuesday. The company's operating margin and profit margin may face some hit due to increase in raw material expenses. In the long run, the company, with a large rural presence, is expected to reap benefits from improving rural sentiment and planned new launches.
Source : Cogencis Information Services Ltd.
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Auto Stocks Outlook for the week – 24 to 28.07.2017
( www.rupeedesk.in )
Stocks of most automobile companies are set to rise next week on the back of expected bullishness
in heavyweight stocks such as Maruti Suzuki India Ltd and Eicher Motors Ltd. Maruti Suzuki and Eicher Motors are expected to post good results for the quarter ended June, Maruti Suzuki's volumes have grown by nearly 13.2% on year to around 395,000 units due to strong domestic demand and this could lift the topline 18.6% on year to 176.97 bln rupees. The average selling price of vehicles is likely to rise by nearly 1% on quarter due to more demand for premium cars of the company and operating margin is also expected to expand 20 basis points on quarter to 14.2%. Strong positive outlook for premium motorcycle maker Eicher Motors on the back of a sustained demand for its high-margin products. The company plans to add nearly 300 dealers till March 2019, and this, coupled with the launch of two new motorcycles, should result in demand remaining strong for another two years. India's largest two-wheeler maker Hero MotoCorp Ltd will report earnings on Tuesday. The company's operating margin and profit margin may face some hit due to increase in raw material expenses. In the long run, the company, with a large rural presence, is expected to reap benefits from improving rural sentiment and planned new launches.
Source : Cogencis Information Services Ltd.
