Auto Stocks Outlook for the week – 10 to 14.08.2015
(Trade
with negative bias due to Earning disappointment)
( www.rupeedesk.in )
The
coming week will see most automobile stocks under pressure after the Apr-Jun
results of three Nifty constituent companies belied expectations.
Tata
Motors is expected to open down 3% on Monday at around 380 rupees, after
reporting
disappointing
earnings. Tata Motors on Friday reported a 48.7% fall in Apr-Jun net profit at
27.69
bln rupees. While Hero MotoCorp beat estimates in terms of net profit, its
fundamentals were weak as motorcycle demand is not picking up and as the
company lacks required engine technology for new products.
We
expect to trading sideways during the coming week. M&M, which reported a
lower-than-estimated fall in net profit for Apr-Jun, could fare better than
Tata Motors and Hero MotoCorp.
