Auto Stocks Outlook For The Week - 09 to 13.10.2017
Auto Stocks Outlook For The Week - 09 to 13.10.2017
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Stocks of most automobile companies are seen trading in a range next week. Focus will be on stocks of Maruti Suzuki India Ltd and Eicher Motors Ltd that are seen rising following strong sales growth
in September. All automobile companies registered a strong growth in their monthly sales figures for September, showing signs of recovery after the short-term blip due to the implementation of goods and services tax and introduction of Bharat Stage-IV fuel emission norms from April. The country's largest carmaker Maruti Suzuki registered a 9.3% on-year growth in automobile sales for September. Sales of Royal Enfield motorcycles, the flagship product of Eicher Motors, grew 22% on year, and Ashok Leyland witnessed a 28% on-year growth in sales of commercial vehicles. Good monsoon, rural demand, and festival season demand are near-term triggers for the industry. We remain positive on Maruti Suzuki, Hero MotoCorp, Mahindra & Mahindra Ltd, and Tata Motors owing to extensive distribution network and strong rural franchise. A healthy order book and an increasing preference for premium motorcycles are expected to aid Eicher Motors. Also, production ramp up and a waiting period of 4-5 weeks for its popular 350cc motorcycle support the positive Positive momentum may
continue; earnings eyed outlook for the company. The commercial vehicle segment has seen a turnaround since August on the back of a pick-up in infrastructure segment, revival in replacement demand, gradual improvement in industrial production and restrictions on overloading. Like Ashok Leyland, this would continue to gain market share, led by growing acceptance of EGR (exhaust gas
recirculation) trucks compared with SCR (selective catalytic reduction) trucks of competitors. The two-wheeler automobile space has emerged strong in September automobile sales figures with Hero MotoCorp posting record high monthly sales at 720,739 units. We expect sales of two-wheelers to rise over the next two years due to higher rural income, higher disposable income in view of seventh pay commission benefits, and lack of organised public transport system. We will continue to track the performance of automobile sales in October as more festivals will fall in this month.
Source : Cogencis Information Services Ltd.
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( www.rupeedesk.in )
Stocks of most automobile companies are seen trading in a range next week. Focus will be on stocks of Maruti Suzuki India Ltd and Eicher Motors Ltd that are seen rising following strong sales growth
in September. All automobile companies registered a strong growth in their monthly sales figures for September, showing signs of recovery after the short-term blip due to the implementation of goods and services tax and introduction of Bharat Stage-IV fuel emission norms from April. The country's largest carmaker Maruti Suzuki registered a 9.3% on-year growth in automobile sales for September. Sales of Royal Enfield motorcycles, the flagship product of Eicher Motors, grew 22% on year, and Ashok Leyland witnessed a 28% on-year growth in sales of commercial vehicles. Good monsoon, rural demand, and festival season demand are near-term triggers for the industry. We remain positive on Maruti Suzuki, Hero MotoCorp, Mahindra & Mahindra Ltd, and Tata Motors owing to extensive distribution network and strong rural franchise. A healthy order book and an increasing preference for premium motorcycles are expected to aid Eicher Motors. Also, production ramp up and a waiting period of 4-5 weeks for its popular 350cc motorcycle support the positive Positive momentum may
continue; earnings eyed outlook for the company. The commercial vehicle segment has seen a turnaround since August on the back of a pick-up in infrastructure segment, revival in replacement demand, gradual improvement in industrial production and restrictions on overloading. Like Ashok Leyland, this would continue to gain market share, led by growing acceptance of EGR (exhaust gas
recirculation) trucks compared with SCR (selective catalytic reduction) trucks of competitors. The two-wheeler automobile space has emerged strong in September automobile sales figures with Hero MotoCorp posting record high monthly sales at 720,739 units. We expect sales of two-wheelers to rise over the next two years due to higher rural income, higher disposable income in view of seventh pay commission benefits, and lack of organised public transport system. We will continue to track the performance of automobile sales in October as more festivals will fall in this month.
Maruti Suzuki - Up
Bajaj Auto - Down
Tatamotors - Up
Bajaj Auto - Down
Tatamotors - Up
Ashokeley - Up
M&M - U[
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Source : Cogencis Information Services Ltd.
