www.rupeedesk.in
Stocks of major car manufacturers look positive for the coming week, while those of two-wheeler makers are seen moving in a narrow range. Largely, the auto stocks would exhibit a rangebound trend with a positive bias during the coming week. We see the Maruti Suzuki's stock trading with a positive bias during the coming week, mainly due to better-than-expected Jan-Mar earnings.
The country's leading passenger car manufacturer, Maruti Suzuki, reported a 94% on year rise in its Jan-Mar net profit to 12.40 bln rupees, aided by a good sales mix and a weak yen, despite overall sales volume falling 4.61%. The company's net sales rose nearly 14% on year to 130.56 bln rupees. Maruti Suzuki reporting a 12% on year rise in its Jan-Mar net profit to 7.18 bln rupees. Its net sales for the reporting quarter were seen rising 11% on year to 127.62 bln rupees.
India's largest two-wheeler manufacturer, Hero MotoCorp Ltd, also detailed its earnings for Jan-Mar, where it surprised the market with a better-than-expected net profit of 6.03 bln rupees, down only 4.9% on year. A fall in sales and a weak product mix were expected to drag Hero MotoCorp's Jan-Mar net profit down 17% on year to 4.99 bln rupees.
We expect Hero MotoCorp's counter to exhibit a rangebound movement next week. Among major automobile manufacturers, TVS Motor Co Ltd is scheduled to detail its earnings on Apr 30.
