Auto Sector Weekly Report – 13.11.2017 To 17.11.2017
Auto Sector Weekly Report – 13.11.2017 To 17.11.2017
Stocks of most automobile companies are likely to trade within a narrow range next week, as closely
monitor the performance of automobile companies, after tepid volumes in October. Domestic
passenger car sales fell 5.3% on year in October to 184,666 units, while two-wheeler sales declined 2.8% on year to 1.75 mln units, according to data released by the Society of Indian Automobile
Manufacturers yesterday. The festival season sales have not taken place as per expectations.
The issues related to goods and services tax are also getting resolved slowly. So these factors might result in tepid growth in this segment in the near term.
In October, sales fell on year due to a higher base as most of the festivals were spread across
September and October last year, while this year, festival season sales started in the last week of
September and tapered off by mid-October.
The earnings of Eicher Motors Ltd, slated to be released on Tuesday. The maker of Royal Enfield
motorcycles is expected to report a 30.1% on-year rise in consolidated net profit for Jul-Sep at 5.4
bln rupees due to higher income. We remain positive on the company due to better margins from its
motorcycle and commercial vehicle business, but will monitor the management's commentary on the
demand for premium motorcycles at the retail level, the order book position, and new launches.
Mahindra & Mahindra Ltd posted better-than-expected earnings for September quarter. The net profit
of the company and that of its arm Mahindra Vehicles Manufacturers stood at 14.11 bln rupees for
Jul-Sep, higher than estimate of 13.5 bln rupees. Also remain positive on Tata Motors Ltd, which
released its earnings for Jul-Sep on Thursday, with the company posting a threefold rise in
consolidated net profit. The country's largest carmaker, Maruti Suzuki India Ltd, continues to draw a positive outlook from its popular premium portfolio and strong dealership network. However, advertising costs and soaring input expenses may put pressure on its margins going ahead. Two-wheeler makers witnessed a weak performance in October, as dealers stocked up inventory in September ahead of the onset of the festival season from Sep 21.
Source : Cogencis Information Services Ltd.
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Auto Sector Weekly Report – 13.11.2017 To 17.11.2017
Stocks of most automobile companies are likely to trade within a narrow range next week, as closely
monitor the performance of automobile companies, after tepid volumes in October. Domestic
passenger car sales fell 5.3% on year in October to 184,666 units, while two-wheeler sales declined 2.8% on year to 1.75 mln units, according to data released by the Society of Indian Automobile
Manufacturers yesterday. The festival season sales have not taken place as per expectations.
The issues related to goods and services tax are also getting resolved slowly. So these factors might result in tepid growth in this segment in the near term.
In October, sales fell on year due to a higher base as most of the festivals were spread across
September and October last year, while this year, festival season sales started in the last week of
September and tapered off by mid-October.
The earnings of Eicher Motors Ltd, slated to be released on Tuesday. The maker of Royal Enfield
motorcycles is expected to report a 30.1% on-year rise in consolidated net profit for Jul-Sep at 5.4
bln rupees due to higher income. We remain positive on the company due to better margins from its
motorcycle and commercial vehicle business, but will monitor the management's commentary on the
demand for premium motorcycles at the retail level, the order book position, and new launches.
Mahindra & Mahindra Ltd posted better-than-expected earnings for September quarter. The net profit
of the company and that of its arm Mahindra Vehicles Manufacturers stood at 14.11 bln rupees for
Jul-Sep, higher than estimate of 13.5 bln rupees. Also remain positive on Tata Motors Ltd, which
released its earnings for Jul-Sep on Thursday, with the company posting a threefold rise in
consolidated net profit. The country's largest carmaker, Maruti Suzuki India Ltd, continues to draw a positive outlook from its popular premium portfolio and strong dealership network. However, advertising costs and soaring input expenses may put pressure on its margins going ahead. Two-wheeler makers witnessed a weak performance in October, as dealers stocked up inventory in September ahead of the onset of the festival season from Sep 21.
Source : Cogencis Information Services Ltd.
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