Auto Stocks Outlook for the week – 17 to 21.07.2017
Auto Stocks Outlook for the week – 17 to 21.07.2017
( www.rupeedesk.in )
Stocks of most automobile companies are seen rising next week on the back of expectations of growth in Apr-Jun earnings by heavy weights such as Maruti Suzuki India Ltd, Eicher Motors Ltd. The positive outlook on the sector on the back of higher rural income with normal monsoon, and higher disposable income with the rollout of the seventh pay commission. A good monsoon is also expected to benefit tractor makers like Mahindra & Mahindra Ltd and Escorts Ltd. Maruti Suzuki, M&M are our top picks. This is because they have an extensive distribution network and strong rural franchise, and would be major beneficiaries of demand revival in the next two years. Maruti Suzuki, which will report its earnings on Jul 27, is likely to benefit from sustained demand of its premium models such as the Ciaz sedan, compact sport utility vehicle Vitara Brezza and hatchback Baleno. Maruti Suzuki is expected to witness 19% growth in its topline, aided by 13% volume growth and a 6% net improvement in the average selling price owing to more demand of cars from the its premium segment. Revenue of M&M is expected to increase by 6% on year and the operating margin is likely to remain flat on year at 11.7% for the quarter ended June, Systematix Research said in a report. The country's leading two-wheeler maker, Hero MotoCorp Ltd, is also expected to post "decent" earnings for Apr-Jun led by a pick-up in sales in rural areas and the scooter segment. In its annual report for 2016-17 (Apr-Mar), the company expected to generate more sales in the current financial year started Apr 1 on the back of its latest products--new Glamour 125 motorcycle and refurbished models of Duet, Maestro Edge and Pleasure scooters from the sources.
Source : Cogencis Information Services Ltd.
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Auto Stocks Outlook for the week – 17 to 21.07.2017
( www.rupeedesk.in )
Stocks of most automobile companies are seen rising next week on the back of expectations of growth in Apr-Jun earnings by heavy weights such as Maruti Suzuki India Ltd, Eicher Motors Ltd. The positive outlook on the sector on the back of higher rural income with normal monsoon, and higher disposable income with the rollout of the seventh pay commission. A good monsoon is also expected to benefit tractor makers like Mahindra & Mahindra Ltd and Escorts Ltd. Maruti Suzuki, M&M are our top picks. This is because they have an extensive distribution network and strong rural franchise, and would be major beneficiaries of demand revival in the next two years. Maruti Suzuki, which will report its earnings on Jul 27, is likely to benefit from sustained demand of its premium models such as the Ciaz sedan, compact sport utility vehicle Vitara Brezza and hatchback Baleno. Maruti Suzuki is expected to witness 19% growth in its topline, aided by 13% volume growth and a 6% net improvement in the average selling price owing to more demand of cars from the its premium segment. Revenue of M&M is expected to increase by 6% on year and the operating margin is likely to remain flat on year at 11.7% for the quarter ended June, Systematix Research said in a report. The country's leading two-wheeler maker, Hero MotoCorp Ltd, is also expected to post "decent" earnings for Apr-Jun led by a pick-up in sales in rural areas and the scooter segment. In its annual report for 2016-17 (Apr-Mar), the company expected to generate more sales in the current financial year started Apr 1 on the back of its latest products--new Glamour 125 motorcycle and refurbished models of Duet, Maestro Edge and Pleasure scooters from the sources.
Source : Cogencis Information Services Ltd.
