Automobile Stocks Outlook for the week – 27 to 30.04.2015
( www.rupeedesk.in )
Stocks
of major automakers, in line with the broader market, are seen trading with a
negative bias next week due to disappointing earnings and a weak rupee, adding
that the sector would eye the Jan-Mar results of Maruti Suzuki India Ltd.
India's
largest carmaker, Maruti Suzuki, is scheduled to detail its Jan-Mar earnings on
Monday, which would be closely watched by the sector. Maruti Suzuki is expected
to report a 39% on-year rise in its net profit at 11.14 bln rupees for the quarter
ended March, largely aided by higher volumes by way of increasing acceptance of
petrol cars, along with favourable foreign exchange.
Expect
some reduction in discounts and benefits from lower commodity costs to further
improve profitability. There is a possibility of upside surprises to our
estimates as well if the entire benefit of the decline in commodity prices
flows in Jan-Mar itself.
Maruti
Suzuki's counter is seen trading up during the first half of the week if the
numbers are in line with expectations, adding that any fall from the
predictions could put the stock under pressure. Apart form Maruti Suzuki, TVS
Motor Co Ltd is expected to detail its Jan-Mar numbers on Wednesday.
