Stocks
of major automobile manufacturers are likely to take cues from the unveiling of new
products at the 12th Auto Expo, which started this week, and from the earnings
for Oct-Dec
slated to be out next week. Tata Motors Ltd and Mahindra & Mahindra Ltd
will declare
their Oct-Dec earnings on Monday and Friday, respectively. The much-awaited Auto
Expo, that started Tuesday, saw many companies unveiling and launching
products, on
the first two days dedicated to the media and dealers. There are expectations
of a few more
launches in the four days left for the Auto Expo to conclude. Company's product launches
on the occasion have sent a positive sentiment across the market, which is
likely to
continue next week. In
what was perhaps the biggest event yet at the 12th Auto Expo, Maruti Suzuki
India Ltd launched
its much-awaited Celerio hatchback with a starting tag of 390,000 rupees,
exshowroom Delhi.
The hatchback has its top variant, with a manual transmission, priced at 496,000
rupees. It is a very important product, both for the company and the consumers. It
has helped aid some positive sentiment. The stock is likely to trade with a
positive bias for
the next week. Similarly, Hero MotoCorp Ltd's counter is seen trading with a
positive bias
on product launches and future plans. The company unveiled three scooters, two
of which
are scheduled to be launched in the next financial year (Apr-Mar) at the Auto
Expo Thursday.
Hero MotoCorp has, over the past three days, unveiled several products including
concept models, but has not launched any. The
company, however, has shown intent on launching products on its own, for the
first time
since its tie-up with Honda Motorcycle ended in 2011. Tata Motors Ltd unveiled
its Falcon
series of vehicles a hatchback Bolt and a compact sedan Zest on Monday during the
Auto Expo with plans to launch the models in the second half of 2014. At the
Auto Expo,
its UK-based subsidiary, the Jaguar Land Rover showcased the concept Jaguar CX-17
all-aluminium sport utility vehicle, which is likely to be commercially
launched in 2015.
The company will declare its results on Monday. Tata Motors Ltd's counter continues
to be driven by the performance of its subsidiary JLR, which sold a record 425,000
cars globally during 2013, thereby providing a balm to the poor standalone domestic
performance of the parent company. JLR
contributes a lion's stock to the company's revenues. This month, the UK-based subsidiary's
sales numbers are expected to be flat. Tata Motors December quarter results will
not be a surprise. Mahindra & Mahindra Ltd will detail its results for Oct-Dec
on Friday.
The company's numbers should be mixed bag. Tractors side sale will shore up sales
numbers. We expects the company to post revenue of 105 bln rupees for Oct-Dec and
a net profit of 8.8 bln rupees with an EBITDA margin at 12.5%. It is also
likely to trade
with a positive bias next week.
