Auto Stocks Outlook for the Week – 09 to 13.02.2015
( www.rupeedesk.in )
The
trajectory of automobile stocks will be decided by companies slated to report
their Oct-Dec earnings next week. Component manufacturers Federal Mogul Goetze,
JK Tyre and Industries, Asahi India Glass, Amtek Auto, and Motherson Sumi
Systems will declare their Oct-Dec earnings next week. Original equipment
manufacturers such as Escorts and Eicher Motors will also declare their
earnings in the week to come.
Stocks
of major automobile companies took a beating this week. The BSE Auto Index fell
4.7% this week against the 1.7% fall in broader indices. On Thursday, Tata
Motors, the country's largest automobile manufacturer by revenue, disappointed
the street with its earnings in Oct-Dec as its consolidated net profit declined
25.5% on-year to 35.8 bln rupees. Tata Motors' performance was marred by
higher-than-expected losses in its India operations and muted performance of
its arm Jaguar Land Rover. Despite the earnings, we see Tata Motors' stocks gaining
ground in the near term, largely due to Jaguar Land Rover.
