Auto Stocks Outlook for the week - 21 to 24.08.2017
Auto Stocks Outlook for the week - 21 to 24.08.2017
( www.rupeedesk.in )
Stocks of most automobile companies are seen falling next week on expected bearishness
in heavyweights such as Mahindra & Mahindra Ltd and Maruti Suzuki India Ltd. Weakness in indices due to mixed cues from global markets is also likely to contribute to the fall in stocks. The short term outlook for Mahindra & Mahindra Ltd seems weak, according to the company struggles to regain its share in the utility vehicle segment, its stronghold. The Mumbai-based company recently lost the leading position in the utility vehicle space to Maruti Suzuki India Ltd. The company had reported a 20% on year fall in its net profit to 7.7 bln rupees in the June quarter. The company's passenger vehicle segment saw a nominal growth of 4.4% during the quarter. While the company has planned 10 new launches in the utility vehicle space in 2018, it does not want to set a target for regaining lost market share in the utility vehicle space given the growing competition and diverse products, according to company Chairman Anand Mahindra. The near term outlook for the Pune-based two-wheeler company Bajaj Auto Ltd also seems dismal as the company's recent tie-up with UK-based Triumph Motorcycles for midcapacity motorcycles has not created a strong impression on the investors. Maruti Suzuki India Ltd and Hero MotoCorp Ltd remain the top picks among the
automobile space for the medium term given the strong product portfolio and an expected improvement in rural economy, where the companies have a large presence.
Source : Cogencis Information Services Ltd.
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Auto Stocks Outlook for the week - 21 to 24.08.2017
( www.rupeedesk.in )
Stocks of most automobile companies are seen falling next week on expected bearishness
in heavyweights such as Mahindra & Mahindra Ltd and Maruti Suzuki India Ltd. Weakness in indices due to mixed cues from global markets is also likely to contribute to the fall in stocks. The short term outlook for Mahindra & Mahindra Ltd seems weak, according to the company struggles to regain its share in the utility vehicle segment, its stronghold. The Mumbai-based company recently lost the leading position in the utility vehicle space to Maruti Suzuki India Ltd. The company had reported a 20% on year fall in its net profit to 7.7 bln rupees in the June quarter. The company's passenger vehicle segment saw a nominal growth of 4.4% during the quarter. While the company has planned 10 new launches in the utility vehicle space in 2018, it does not want to set a target for regaining lost market share in the utility vehicle space given the growing competition and diverse products, according to company Chairman Anand Mahindra. The near term outlook for the Pune-based two-wheeler company Bajaj Auto Ltd also seems dismal as the company's recent tie-up with UK-based Triumph Motorcycles for midcapacity motorcycles has not created a strong impression on the investors. Maruti Suzuki India Ltd and Hero MotoCorp Ltd remain the top picks among the
automobile space for the medium term given the strong product portfolio and an expected improvement in rural economy, where the companies have a large presence.
Source : Cogencis Information Services Ltd.
