Auto Stocks Outlook for the week – 18 to 22.08.2014
( www.rupeedesk.in )
( www.rupeedesk.in )
Stocks of automobile manufacturers are seen continuing their
upward momentum next
week on the back of strong Apr-Jun earnings reported by
index heavyweights such as
Tata Motors, Mahindra & Mahindra, and Maruti Suzuki
India.
Tata Motors, riding high on a phenomenal financial
performance by arm Jaguar Land
Rover Automotive Plc, reported a consolidated Apr-Jun net
profit of nearly 54 bln
rupees, more than three times the figure in the same quarter
last year. Consolidated net
sales stood at 641.51 bln rupees, up 37.2% on-year, mainly
propelled by higher JLR
realizations.
Maruti Suzuki India also beat market estimates to report a
20.7% on-year rise in its net
profit for the quarter ended June at 7.62 bln rupees. An
improvement in realisation on
account of a better product mix helped Mahindra &
Mahindra post a net profit of 8.82 bln
rupees for the latest quarter.
Stocks of automobile companies will continue to be pulled by
the heavyweights. Also,
consumer demand for automobiles, especially passenger cars
and two-wheelers, has
picked up, which is seen aiding share values.
Over the past week, the BSE-auto index has risen 5.2%, while
the broader markets rose 3%. This trajectory is expected to continue in the week
ahead.
