Auto Stocks Outlook For The Week – 25 to 29.09.2017
Auto Stocks Outlook For The Week – 25 to 29.09.2017
( www.rupeedesk.in )
Stocks of automobile companies are seen declining next week, in line with the bearish outlook for the broader market amid rising geopolitical turmoil. Apart from geopolitical tensions, market participants will keep a watch on demand for automobiles during the festival season which started Thursday. Investors will track the sales figure for September for cues, post the temporary bump last month related to the goods and services tax. Automobile majors such as Maruti Suzuki India Ltd and Tata Motors Ltd are optimistic about strong sales figures in September. On Thursday, Mumbai based Tata Motors made its entry into the compact sport utility vehicle segment with the launch of Nexon at a starting price of 585,000 rupees, ex-showroom Delhi. The company said it would enter the premium hatchback car segment by mid-2019 and will also come out with a strategy for electric vehicles in a few weeks. Maruti Suzuki also recently took a step towards electric mobility, when its parent company, Suzuki Motor Corp, announced a plan to roll out lithium-ion batteries from 2020 from Gujarat, under a new joint venture with Toshiba and Denso. Apart from this, we maintain a strong positive outlook on Maruti Suzuki on the back of its popular premium portfolio such as the Baleno hatchback and Grand Vitara compact sport utility vehicle, dealership presence across rural and urban regions, and reduced exposure to the Japanese yen. We also expect commercial vehicle segment to witness recovery in medium and heavy commercial vehicle segments over the next few months, with a pick up in economic activity and pent up demand. Ashok Leyland posted a 25% on-year rise in its sales for August, while commercial vehicle sales of Tata Motors rose 34% to 31,566 units. Among two-wheelers, Hero MotoCorp Ltd remains the top pick of our research due to the new launches expected in the current financial year that started April, good monsoon leading to more disposable
income, and a strong dealer network.
Source : Cogencis Information Services Ltd.
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Auto Stocks Outlook For The Week – 25 to 29.09.2017
( www.rupeedesk.in )
Stocks of automobile companies are seen declining next week, in line with the bearish outlook for the broader market amid rising geopolitical turmoil. Apart from geopolitical tensions, market participants will keep a watch on demand for automobiles during the festival season which started Thursday. Investors will track the sales figure for September for cues, post the temporary bump last month related to the goods and services tax. Automobile majors such as Maruti Suzuki India Ltd and Tata Motors Ltd are optimistic about strong sales figures in September. On Thursday, Mumbai based Tata Motors made its entry into the compact sport utility vehicle segment with the launch of Nexon at a starting price of 585,000 rupees, ex-showroom Delhi. The company said it would enter the premium hatchback car segment by mid-2019 and will also come out with a strategy for electric vehicles in a few weeks. Maruti Suzuki also recently took a step towards electric mobility, when its parent company, Suzuki Motor Corp, announced a plan to roll out lithium-ion batteries from 2020 from Gujarat, under a new joint venture with Toshiba and Denso. Apart from this, we maintain a strong positive outlook on Maruti Suzuki on the back of its popular premium portfolio such as the Baleno hatchback and Grand Vitara compact sport utility vehicle, dealership presence across rural and urban regions, and reduced exposure to the Japanese yen. We also expect commercial vehicle segment to witness recovery in medium and heavy commercial vehicle segments over the next few months, with a pick up in economic activity and pent up demand. Ashok Leyland posted a 25% on-year rise in its sales for August, while commercial vehicle sales of Tata Motors rose 34% to 31,566 units. Among two-wheelers, Hero MotoCorp Ltd remains the top pick of our research due to the new launches expected in the current financial year that started April, good monsoon leading to more disposable
income, and a strong dealer network.
Source : Cogencis Information Services Ltd.
