Auto Stocks Outlook for the week – 24 to 28.04.2017
Auto Stocks Outlook for the week – 24 to 28.04.2017
( www.rupeedesk.in )
The shares of most automobile companies are likely to trade in a narrow range next week, ahead of earnings releases for the March quarter. Maruti Suzuki India and TVS Motor Co will be in focus as they will detail their Jan-Mar earnings on Thursday. Maruti Suzuki, the country's largest manufacturer of passenger cars, is likely to witness some pressure on its results due to the commissioning of its Gujarat plant in February. Initially, the company may face some pressure due to higher depreciation costs and fixed expenses at its Gujarat plant. So, that may impact earnings to an extent. However, outlook for the company, which has a 47% market share in the passenger car segment, remains strong due to its portfolio of premium products such as the Baleno hatchback and Vitara Brezza sport utility vehicle. While the Ignis hatchback has not done considerably well and has not met expectations of the company, other models are doing well and aid the company's growth outlook. The country's largest two-wheeler maker, Hero MotoCorp, is likely to benefit from the forecast of a normal monsoon by the India Meteorological Department the company derives huge demand from rural regions. TVS Motor Co is expected to post better earnings for Jan-Mar as the company had the minimum impact of demonetisation in the entire two-wheeler space.
Source : Cogencis Information Services Ltd.
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Auto Stocks Outlook for the week – 24 to 28.04.2017
( www.rupeedesk.in )
The shares of most automobile companies are likely to trade in a narrow range next week, ahead of earnings releases for the March quarter. Maruti Suzuki India and TVS Motor Co will be in focus as they will detail their Jan-Mar earnings on Thursday. Maruti Suzuki, the country's largest manufacturer of passenger cars, is likely to witness some pressure on its results due to the commissioning of its Gujarat plant in February. Initially, the company may face some pressure due to higher depreciation costs and fixed expenses at its Gujarat plant. So, that may impact earnings to an extent. However, outlook for the company, which has a 47% market share in the passenger car segment, remains strong due to its portfolio of premium products such as the Baleno hatchback and Vitara Brezza sport utility vehicle. While the Ignis hatchback has not done considerably well and has not met expectations of the company, other models are doing well and aid the company's growth outlook. The country's largest two-wheeler maker, Hero MotoCorp, is likely to benefit from the forecast of a normal monsoon by the India Meteorological Department the company derives huge demand from rural regions. TVS Motor Co is expected to post better earnings for Jan-Mar as the company had the minimum impact of demonetisation in the entire two-wheeler space.
Source : Cogencis Information Services Ltd.