Auto Stocks Outlook For The Week – 23 to 27.10.2017
Auto Stocks Outlook For The Week – 23 to 27.10.2017
( www.rupeedesk.in )
The stocks of most automobile companies are expected to trade in a narrow range next week as investors remain cautious ahead of the September quarter earnings of Maruti Suzuki, the country's largest carmaker. Maruti Suzuki, will be closely eyed by investors next week as the company will report its Jul-Sep earnings on Oct 27. Higher share of recent launches is expected to improve the margin profile further for the company. Profit is expected at 21 bln rupees (lower 12.6% on year due to a high base). 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, expansive rural franchise and demand revival in the next two years. Tata Motors would be an outperformer, led by potential levers such as strong margin performance at Jaguar Land Rover and lower losses in the standalone business. 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. However 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.
Source : Cogencis Information Services Ltd.
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( www.rupeedesk.in )
The stocks of most automobile companies are expected to trade in a narrow range next week as investors remain cautious ahead of the September quarter earnings of Maruti Suzuki, the country's largest carmaker. Maruti Suzuki, will be closely eyed by investors next week as the company will report its Jul-Sep earnings on Oct 27. Higher share of recent launches is expected to improve the margin profile further for the company. Profit is expected at 21 bln rupees (lower 12.6% on year due to a high base). 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, expansive rural franchise and demand revival in the next two years. Tata Motors would be an outperformer, led by potential levers such as strong margin performance at Jaguar Land Rover and lower losses in the standalone business. 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. However 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.
Maruti Suzuki - Up
Tatamotors - Down
Ashokeley - Down
Bajaj Auto - Up
Tatamotors - Down
Ashokeley - Down
Bajaj Auto - Up
M&M - Up
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Source : Cogencis Information Services Ltd.
