Auto
Stocks Outlook for the week – 17 to 21.11.2014
( www.rupeedesk.in )
Stocks of major
automobile manufacturers are expected to continue rising in the
week ahead, as the
momentum is seen sustaining for these counters. Stocks of
Tata Motors, which
declared its Jul-Sep earnings post market hours yesterday,
are expected to fall on
Monday, as the company posted below-expectations
numbers--a consolidated
net profit of 32.91 bln rupees, as against an estimate of
47.6 bln rupees.
Disappointing results
from the company's standalone business has been offset by
good business from the UK
arm Jaguar Land Rover. JLR's net profit for Jul-Sep
was at 450 mln pound
sterling, as against 507 mln pound for the same quarter
last year. TVS Motor Co also
reported its earnings yesterday. The company
posted a net profit of
948.1 mln rupees, 6.7% higher than the corresponding
period a year ago, and
lower than estimates. The company's net sales for the
reporting quarter grew
34.3% on year to 26.35 bln rupees. Estimates about TVS
Motor Jul-Sep net profit
at 1.01 bln rupees, and net sales at 27.24 bln rupees.
TVS Motor's earnings
before interest, tax, depreciation, and amortisation margin
during the quarter was
6.06%, up from 5.88% a year ago. The Chennai-based
company's net sales were
supported by a 35.0% on-year growth in sales of twowheelers
in Jul-Sep. Three-wheeler
sales grew 24.0% to 22,606 units. TVS Motor
could see some buying at
the current level, as the earnings were broadly in line
with estimates.
The overall trend for
automobile stocks is seen positive in the medium-term.
Stocks of Mahindra &
Mahindra and Maruti Suzuki are expected to fall in the
week ahead, as they show
a selling opportunity at the current levels, while those of Ashok Leyland and
Bajaj Auto are expected to rise.
