Auto Stocks
Outlook for the week – 13 to 17.10.2014
( www.rupeedesk.in )
Shares of major automobile
manufacturers are seen improving next week as analysts reckon
there are buying opportunities at
current levels, especially in counters of Ashok Leyland, TVS
Motor Co, whose current prices
are seen to be attractive.
On Monday, the Society of Indian
Automobile Manufacturers will detail the sales numbers for
automakers for September and for
the three months ended Sep 30.
The broader market is expected to
remain subdued next week as the Index of Industrial
production for August reported
showed a subdued growth of 0.4%, much below expectations.
In the run up to the festivals
season, most automakers were able to report good set of numbers, in
terms of dealer dispatches, as
they stocked up in anticipation of increased consumer demand.
The festivals season in India
runs from Oct-Dec, and this is when a bulk of the automobile
purchases in the country takes
place as consumer sentiment is buoyant.
Over the past few months, the
sales trajectory of certain key vehicle segments, particularly
passenger cars and two-wheelers,
has been positive, driving up stock valuations of companies
such as Maruti Suzuki India, Hero
MotoCorp and TVS Motor Co. Hero MotoCorp, TVS Motor Co,
Ashok Leyland is cheap even at current levels and present buying opportunity
