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Stocks of major automakers will get cues from November sales numbers, which are likely to be out on Monday. The sales figures of November will be out on Monday, after which the stocks will move as per the performance of the companies in terms of the monthly sales numbers. Monthly sales for November will drive the auto stocks. The numbers are keenly awaited, as investors would want to know how the automakers fared during the festive season. Usually, automakers dispatch vehicles to dealers in October and November in order to pile up stocks to meet the festival demand. The general view is that the market has been lukewarm for the auto companies.
Hero MotorCorp Ltd is likely to trade with a positive bias as its November sales are expected to have grown by about 10% on year. Bullish on Maruti Suzuki Ltd's scrip as the company is expected to record good sales growth as it did last month. There is no trigger for Mahindra & Mahindra Ltd, though. The tractor sales of the company will pick up but at the same time, its utility vehicle segment is likely to remain tepid. Tata Motors Ltd will again show good momentum on the back of strong Jaguar Land Rover sales. The stock is most likely to be positive next week. Eicher Motors Ltd is likely to show stellar volume growth. In the commercial vehicles space, they are best placed financially. Eicher's range of buses and trucks has the highest profit margins in the domestic market.
With dispatches of Hero MotoCorp Ltd's new Splendor iSmart commencing during the month, we expect robust wholesales. HMCL (Hero MotoCorp) remains focused on export markets and are (is) also eyeing higher pie of the spare-parts market, riding its soon-to-be-operational global parts centre. Cost rationalization strategies are expected to bolster the margin of Hero MotorCorp while rising competitive intensity from Honda Motorcycle and Scooter remains a concern. Better-than-anticipated success of its new launches and refreshes can be a key stock catalyst.
Stocks of major automakers will get cues from November sales numbers, which are likely to be out on Monday. The sales figures of November will be out on Monday, after which the stocks will move as per the performance of the companies in terms of the monthly sales numbers. Monthly sales for November will drive the auto stocks. The numbers are keenly awaited, as investors would want to know how the automakers fared during the festive season. Usually, automakers dispatch vehicles to dealers in October and November in order to pile up stocks to meet the festival demand. The general view is that the market has been lukewarm for the auto companies.
Hero MotorCorp Ltd is likely to trade with a positive bias as its November sales are expected to have grown by about 10% on year. Bullish on Maruti Suzuki Ltd's scrip as the company is expected to record good sales growth as it did last month. There is no trigger for Mahindra & Mahindra Ltd, though. The tractor sales of the company will pick up but at the same time, its utility vehicle segment is likely to remain tepid. Tata Motors Ltd will again show good momentum on the back of strong Jaguar Land Rover sales. The stock is most likely to be positive next week. Eicher Motors Ltd is likely to show stellar volume growth. In the commercial vehicles space, they are best placed financially. Eicher's range of buses and trucks has the highest profit margins in the domestic market.
With dispatches of Hero MotoCorp Ltd's new Splendor iSmart commencing during the month, we expect robust wholesales. HMCL (Hero MotoCorp) remains focused on export markets and are (is) also eyeing higher pie of the spare-parts market, riding its soon-to-be-operational global parts centre. Cost rationalization strategies are expected to bolster the margin of Hero MotorCorp while rising competitive intensity from Honda Motorcycle and Scooter remains a concern. Better-than-anticipated success of its new launches and refreshes can be a key stock catalyst.
