Auto Stocks Outlook For The Week - 30.10.2017 To 03.11.2017
Auto Stocks Outlook For The Week - 30.10.2017 To 03.11.2017
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Stocks of most automobile companies are expected to rise next week on account of a strong positive outlook for heavyweights like Maruti Suzuki India Ltd and Tata Motors Ltd. We will also closely monitor the October sales volume numbers that to be released by automobile companies next week.
Maruti Suzuki reported its Jul-Sep results yesterday, beating consensus estimates. The company posted a bottom-line of 24.8 bln rupees on a top line of 217.7 bln rupees during the September quarter. We expect revenue to grow at an 18% compounded annual growth rate over two years till
March 2019, led by 13% on-year growth in volume and 4% on-year rise in realisation. A strong rural demand, new launches, benign interest rates and healthy order book. We will continue to monitor the order book momentum for Baleno hatchback, Vitara Brezza compact sport utility vehicle and Dzire sedan. Hero MotoCorp Ltd will also be closely eyed by us next week as the company will detail its Jul-Sep earnings on Wednesday. An estimate for the two-wheeler maker's bottom line is 10.4 bln rupees on a top line of 87.7 bln rupees in the September quarter. Good monsoon and a revival in
the rural economy especially in Uttar Pradesh, the largest market for two wheelers, with a share of 14% will be key growth drivers for the two wheeler industry. In line with the strong sales performance shown by two-wheeler makers in the quarter, the commercial vehicle segment is also expected to see good growth in volumes going forward. We expect the commercial vehicle
volumes to further recover in Oct-Mar due to infrastructure activity-led demand pick-up and firm freight rates across trunk routes. In the long run, Maruti Suzuki, Hero MotoCorp Ltd, and Mahindra & Mahindra Ltd are expected to benefit from their strong brand equity, extensive distribution
network, and expansive rural franchise and demand revival in the next two years. Tata Motors would be an outperformed, led by potential levers such as strong margin performance at Jaguar Land Rover and lower losses in the standalone business.
Source : Cogencis Information Services Ltd.
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( www.rupeedesk.in )
Stocks of most automobile companies are expected to rise next week on account of a strong positive outlook for heavyweights like Maruti Suzuki India Ltd and Tata Motors Ltd. We will also closely monitor the October sales volume numbers that to be released by automobile companies next week.
Maruti Suzuki reported its Jul-Sep results yesterday, beating consensus estimates. The company posted a bottom-line of 24.8 bln rupees on a top line of 217.7 bln rupees during the September quarter. We expect revenue to grow at an 18% compounded annual growth rate over two years till
March 2019, led by 13% on-year growth in volume and 4% on-year rise in realisation. A strong rural demand, new launches, benign interest rates and healthy order book. We will continue to monitor the order book momentum for Baleno hatchback, Vitara Brezza compact sport utility vehicle and Dzire sedan. Hero MotoCorp Ltd will also be closely eyed by us next week as the company will detail its Jul-Sep earnings on Wednesday. An estimate for the two-wheeler maker's bottom line is 10.4 bln rupees on a top line of 87.7 bln rupees in the September quarter. Good monsoon and a revival in
the rural economy especially in Uttar Pradesh, the largest market for two wheelers, with a share of 14% will be key growth drivers for the two wheeler industry. In line with the strong sales performance shown by two-wheeler makers in the quarter, the commercial vehicle segment is also expected to see good growth in volumes going forward. We expect the commercial vehicle
volumes to further recover in Oct-Mar due to infrastructure activity-led demand pick-up and firm freight rates across trunk routes. In the long run, Maruti Suzuki, Hero MotoCorp Ltd, and Mahindra & Mahindra Ltd are expected to benefit from their strong brand equity, extensive distribution
network, and expansive rural franchise and demand revival in the next two years. Tata Motors would be an outperformed, led by potential levers such as strong margin performance at Jaguar Land Rover and lower losses in the standalone business.
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Source : Cogencis Information Services Ltd.
