www.rupeedesk.in
Stocks of major automakers are seen moving in accordance with company-specific triggers, as there aren't any larger stock-moving action in the market. Two major automobile manufacturers--Mahindra & Mahindra Ltd, and Tata Motors Ltd--are scheduled to detail their earning for Jan-Mar on May 30, and May 29, respectively. The stocks of the two companies would react based on the results. Nothing much can be predicted as of now.
For Tata Motors, we expect a slightly negative result, with its standalone margin set to disappoint. However, sales of its subsidiary Jaguar Land Rover would keep consolidated margins up. Tata Motors is expected to post a net profit of 26.54 bln rupees, a year-on-year fall of 57%. Net sales of the company are expected to be up 2% at 517.60 bln rupees.
M&M would post a positive performance for the quarter, in spite of tractor sales being down. M&M's net profit would be 7.57 bln rupees, down 13% year-on-year, where the company's net sales would be up 8% on year at 99.58 bln rupees. With the monsoon round the corner, demand for tractors may rise leading to positive affect on Mahindra & Mahindra Ltd.
Bajaj Auto Ltd is also seen positive in the next week with the government allowing quadricycles to ply intra-city as commercial vehicles. Its rival, Hero MotoCorp Ltd, also expects a positive week on the back of possible new launches soon. Two-wheeler stocks are expected to outperform four-wheeler manufacturing companies in the week.
India's largest carmaker Maruti Suzuki is seen positive during the coming on likely "good" monthly numbers, and also as demand for petrol cars has been as its spread over the diesel shrinks.
