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The automobile space largely looks to exhibit stock-specific action during the coming week, with a minor underlying current humming a positive note. India's largest carmaker Maruti Suzuki India Ltd, and the largest two-wheeler manufacturer Hero MotoCorp Ltd, are scheduled to detail their earnings for Apr-Jun on Jul 25 and Jul 24 respectively.
Results of Hero MotoCorp and Maruti Suzuki would be important cues for the auto sector, and the market would react accordingly. Maruti Suzuki is likely to report a net profit of 6.21 bln rupees, up 47% on year. The estimated net profit is up on year primarily on a low base. Sequentially, Maruti Suzuki's net profit is expected to be half. The company is expected to post net sales to the tune of 101.10 bln rupees for the Apr-Jun period, down 4% on year.
Maruti is likely to post lower-than-expected results, which would cause the stock to trade with a negative bias during the week. As for Hero MotoCorp we estimates, net profit at 5.48 bln rupees, down 11% on year. Hero MotoCorp is expected to report net sales of 62.59 bln rupees, flat on year.
Looks like Hero (MotoCorp) will come out with better-than-expected results. In the anticipation, the stock would trade in a narrow range, but with a positive bias. Bajaj Auto Ltd, in its earnings for Apr-Jun released today, recorded a 2.8% year-on-year growth in net profit to 7.38 bln rupees. The company's net sales during the quarter rose 2.02% to 48.09 bln rupees.
Riding high on rupee's depreciation, Bajaj Auto, which has a sizeable amount of exports, was able to overcome the dismal environment prevailing in the auto industry, and report marginal growth. The company hedges 70% of its exports, and sees continued gains from the depreciation of the rupee.
Apart from results, the upcoming shradh season would see production cuts at plants, with companies making an effort to cut inventory at dealer levels. Tata Motors continues to beat expectations, and trade positively. This should be carried forward to the next week as well.
The automobile space largely looks to exhibit stock-specific action during the coming week, with a minor underlying current humming a positive note. India's largest carmaker Maruti Suzuki India Ltd, and the largest two-wheeler manufacturer Hero MotoCorp Ltd, are scheduled to detail their earnings for Apr-Jun on Jul 25 and Jul 24 respectively.
Results of Hero MotoCorp and Maruti Suzuki would be important cues for the auto sector, and the market would react accordingly. Maruti Suzuki is likely to report a net profit of 6.21 bln rupees, up 47% on year. The estimated net profit is up on year primarily on a low base. Sequentially, Maruti Suzuki's net profit is expected to be half. The company is expected to post net sales to the tune of 101.10 bln rupees for the Apr-Jun period, down 4% on year.
Maruti is likely to post lower-than-expected results, which would cause the stock to trade with a negative bias during the week. As for Hero MotoCorp we estimates, net profit at 5.48 bln rupees, down 11% on year. Hero MotoCorp is expected to report net sales of 62.59 bln rupees, flat on year.
Looks like Hero (MotoCorp) will come out with better-than-expected results. In the anticipation, the stock would trade in a narrow range, but with a positive bias. Bajaj Auto Ltd, in its earnings for Apr-Jun released today, recorded a 2.8% year-on-year growth in net profit to 7.38 bln rupees. The company's net sales during the quarter rose 2.02% to 48.09 bln rupees.
Riding high on rupee's depreciation, Bajaj Auto, which has a sizeable amount of exports, was able to overcome the dismal environment prevailing in the auto industry, and report marginal growth. The company hedges 70% of its exports, and sees continued gains from the depreciation of the rupee.
Apart from results, the upcoming shradh season would see production cuts at plants, with companies making an effort to cut inventory at dealer levels. Tata Motors continues to beat expectations, and trade positively. This should be carried forward to the next week as well.
