Auto Stocks Outlook for the week – 02 to 05.05.2017
Auto Stocks Outlook for the week –02 to 05.05.2017
( www.rupeedesk.in )
Stocks of most automobile companies are seen trading with a positive bias next week on the back of a
strong market sentiment with Maruti Suzuki India Ltd in focus. Automobile sales numbers for April,
which are likely to be announced by the companies in the first week of May, are expected to impact the stocks movement. Sales of medium and heavy commercial vehicles are seen declining during the month for Ashok Leyland as well as Tata Motors. The rally in the broad market has led to bullishness in the auto index. The index has also been aided by robust earnings of Maruti Suzuki.Maruti Suzuki posted a 15.8% on-year growth in Jan-Mar earnings at 17.1 bln rupees on the back of volume growth, full capacity utilisation, and a greater share of higher-segment models such as Vitara Brezza compact sport utility vehicle and Baleno hatchback. Maruti Suzuki is well poised to outgrow the domestic passenger vehicle industry and we expect the company to report 10% volume growth in the current financial year. Also, the share of premium cars in the company's sales is likely to increase due to the planned launches. The company's focus on new products and growth in both urban and rural areas will translate into healthy volume growth for Maruti Suzuki and we expect it to stay well ahead of historical average in terms of operating margin. TVS Motor Co Ltd, which posted a 6.8% on-year decline in net profit during the quarter ended March, is also expected to outpace the two-wheeler industry in the current financial year on the back of new launches and wider distribution reach. We cautious about Hero MotoCorp Ltd's earnings, due on May 10, as the company has a widespread rural
presence and was among the most severely hit companies due to demonetisation. The company also
suffered some loss on account of Bharat Stage-III inventory, whose sale and registration was frozen by a Supreme Court order on Mar 29. The Nifty Auto index is seen gaining from the overall bullishness in the market and can rise towards 10470 points and can further rally to 10800 points.
Source : Cogencis Information Services Ltd.
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Auto Stocks Outlook for the week –02 to 05.05.2017
Stocks of most automobile companies are seen trading with a positive bias next week on the back of a
strong market sentiment with Maruti Suzuki India Ltd in focus. Automobile sales numbers for April,
which are likely to be announced by the companies in the first week of May, are expected to impact the stocks movement. Sales of medium and heavy commercial vehicles are seen declining during the month for Ashok Leyland as well as Tata Motors. The rally in the broad market has led to bullishness in the auto index. The index has also been aided by robust earnings of Maruti Suzuki.Maruti Suzuki posted a 15.8% on-year growth in Jan-Mar earnings at 17.1 bln rupees on the back of volume growth, full capacity utilisation, and a greater share of higher-segment models such as Vitara Brezza compact sport utility vehicle and Baleno hatchback. Maruti Suzuki is well poised to outgrow the domestic passenger vehicle industry and we expect the company to report 10% volume growth in the current financial year. Also, the share of premium cars in the company's sales is likely to increase due to the planned launches. The company's focus on new products and growth in both urban and rural areas will translate into healthy volume growth for Maruti Suzuki and we expect it to stay well ahead of historical average in terms of operating margin. TVS Motor Co Ltd, which posted a 6.8% on-year decline in net profit during the quarter ended March, is also expected to outpace the two-wheeler industry in the current financial year on the back of new launches and wider distribution reach. We cautious about Hero MotoCorp Ltd's earnings, due on May 10, as the company has a widespread rural
presence and was among the most severely hit companies due to demonetisation. The company also
suffered some loss on account of Bharat Stage-III inventory, whose sale and registration was frozen by a Supreme Court order on Mar 29. The Nifty Auto index is seen gaining from the overall bullishness in the market and can rise towards 10470 points and can further rally to 10800 points.
Source : Cogencis Information Services Ltd.