www.rupeedesk.in
Stocks of major automakers are seen trading with a positive bias next week as most of the companies have posted good growth in Jul-Sep as well as good sales volume growth in October. The auto sector looks good next week. M&M (Mahindra & Mahindra Ltd) is likely to open on a positive note. M&M beat analysts' estimates to post a net profit of 9.89 bln rupees in the quarter ended September, 9.6% higher year-on-year on account of improvement in profitability. We had pegged M&M's net profit at 8.22 bln rupees, 9% lower year on year, and net sales at 87.49 bln rupees. M&M's earnings before interest, tax, depreciation and amortisation margin for Jul-Sep stood at 12.82% against 11.40% a year ago, which can be attributed to the higher share of tractors in its product mix. Tractors are high margin products. Tata Motors Ltd's stock is likely to move up on the back of strong earnings posted this week. It beat analysts' estimates to record a 70.7% year-on-year growth in consolidated net profit for the quarter ended September at 35.42 bln rupees, on the back of a strong performance by UK-based subsidiary Jaguar Land Rover Automotive Plc. Tata (Motors) momentum should be in the positive territory. Ashok Leyland Ltd's stock is seen trading negative as the company's volumes declined in October, according to Arora. The total sales of the company in October were down 15% from the year ago period at 6,803 units. Ashok Leyland is also likely to consider merger of its subsidiaries with self on Tuesday. It might not affect the stock as the company had already spoken about the merger on the eve of Jul-Sep earnings announcement. It has been absorbed by the market.
Stocks of major automakers are seen trading with a positive bias next week as most of the companies have posted good growth in Jul-Sep as well as good sales volume growth in October. The auto sector looks good next week. M&M (Mahindra & Mahindra Ltd) is likely to open on a positive note. M&M beat analysts' estimates to post a net profit of 9.89 bln rupees in the quarter ended September, 9.6% higher year-on-year on account of improvement in profitability. We had pegged M&M's net profit at 8.22 bln rupees, 9% lower year on year, and net sales at 87.49 bln rupees. M&M's earnings before interest, tax, depreciation and amortisation margin for Jul-Sep stood at 12.82% against 11.40% a year ago, which can be attributed to the higher share of tractors in its product mix. Tractors are high margin products. Tata Motors Ltd's stock is likely to move up on the back of strong earnings posted this week. It beat analysts' estimates to record a 70.7% year-on-year growth in consolidated net profit for the quarter ended September at 35.42 bln rupees, on the back of a strong performance by UK-based subsidiary Jaguar Land Rover Automotive Plc. Tata (Motors) momentum should be in the positive territory. Ashok Leyland Ltd's stock is seen trading negative as the company's volumes declined in October, according to Arora. The total sales of the company in October were down 15% from the year ago period at 6,803 units. Ashok Leyland is also likely to consider merger of its subsidiaries with self on Tuesday. It might not affect the stock as the company had already spoken about the merger on the eve of Jul-Sep earnings announcement. It has been absorbed by the market.
