Auto Stocks Outlook for the week – 17 to 21.04.2017
Auto Stocks Outlook for the week – 17 to 21.04.2017
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Stocks of most automobile companies are seen rising next week, with Maruti Suzuki India Ltd and Eicher Motors Ltd in focus. The stock of Maruti Suzuki is retain buying status at every price as the company has a strong outlook for the current financial year on the back of a popular product portfolio including Baleno hatchback and Vitara Brezza sports utility vehicle. The proposed launch of a new Swift hatchback in November or December is also seen helping the stock in the long term. Stock are also bullish on shares of Eicher Motors, which recently received an upgrade in target price by brokerage firm Citigroup Global Markets by 7% to 30,000 rupees from 28,000 rupees earlier. We believes the addition of new production capacity at Vallam Vadagal in Tamil Nadu will help expand Eicher Motors' margins further, as higher volumes will result in better price negotiations with vendors. While Hero MotoCorp Ltd is showing signs of recovery in the two-wheeler segment amid gradual improvement in cash availability situation at the ground level in rural regions, Bajaj Auto Ltd does not have a very optimistic Outlook. If this monsoon turns out to be good, the rural spending will be done on discretionary expenses as the essential expenditure has already been done last year after two years of poor rains. So, this will benefit Hero MotoCorp as it has a large rural presence. While V and Avenger motorcycles are doing fairly average, Bajaj does not have a product portfolio which perpetually performs well unlike Hero's Splendor and Passion. Tata Motors Ltd's performance is also likely to remain under pressure in the near term due to weak sales of Jaguar Land Rover and the depreciation of pound.
Source : Cogencis Information Services Ltd.
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Auto Stocks Outlook for the week – 17 to 21.04.2017
( www.rupeedesk.in )
Source : Cogencis Information Services Ltd.