Auto Stocks Outlook for the week – 29.05.2017 to 02.06.2017
Auto Stocks Outlook for the week – 29.05.2017 to 02.06.2017
( www.rupeedesk.in )
Seen rising next week, Maruti Suzuki in focus Stocks of most automobile companies are seen rising next week on the back of a strong general market sentiment and continuous uptick in Maruti Suzuki India Ltd, the heavyweight in the automobile index. Yesterday, share indices rose nearly 1% each and helped the Nifty 50 breach the 9600-point mark to test a fresh lifetime high of 9604.90 points. We remain positive on Maruti Suzuki's growth story on the back of strong volume growth led by consistent volume uptick of Ciaz sedan, Vitara Brezza compact sports utility vehicle and Baleno premium hatchback. The company has also been a top pick by most brokerage houses due to increasing average selling price led by an expanding portfolio in the premium segment and fresh capacity addition from the Gujarat facility. Uptick in rural demand, supporting macro tailwinds like seventh pay commission payout, falling interest rates, urbanisation and growing middle class also aid a strong outlook on the company. Mumbai-based Tata Motors Ltd has also gained from the strong performance of the company's arm Jaguar Land Rover during Jan-Mar. Jaguar Land Rover sales rose 13% on year in the March quarter to 179,509 units. With relatively lower margin volatility expectations and strong model cycle on the back of ramp-up of Discovery sports utility vehicle, Velar sports utility vehicle, new Range Rover Sport sports utility vehicle, and E-Pace compact sports utility vehicle (over next 12-15 months). Ashok Leyland, the third largest commercial vehicle manufacturer, has also retained a positive outlook from market participants as the company beat estimates of Jan-Mar earnings and posted a net profit of 4.8 bln rupees. Company maintains its positive outlook for 2017-18 (Apr-Mar) and is optimistic that the industry will grow at nearly 10-15% in the current financial year led by strong economic growth, mining and infrastructure activities.
Source : Cogencis Information Services Ltd.
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Auto Stocks Outlook for the week – 29.05.2017 to 02.06.2017
( www.rupeedesk.in )
Seen rising next week, Maruti Suzuki in focus Stocks of most automobile companies are seen rising next week on the back of a strong general market sentiment and continuous uptick in Maruti Suzuki India Ltd, the heavyweight in the automobile index. Yesterday, share indices rose nearly 1% each and helped the Nifty 50 breach the 9600-point mark to test a fresh lifetime high of 9604.90 points. We remain positive on Maruti Suzuki's growth story on the back of strong volume growth led by consistent volume uptick of Ciaz sedan, Vitara Brezza compact sports utility vehicle and Baleno premium hatchback. The company has also been a top pick by most brokerage houses due to increasing average selling price led by an expanding portfolio in the premium segment and fresh capacity addition from the Gujarat facility. Uptick in rural demand, supporting macro tailwinds like seventh pay commission payout, falling interest rates, urbanisation and growing middle class also aid a strong outlook on the company. Mumbai-based Tata Motors Ltd has also gained from the strong performance of the company's arm Jaguar Land Rover during Jan-Mar. Jaguar Land Rover sales rose 13% on year in the March quarter to 179,509 units. With relatively lower margin volatility expectations and strong model cycle on the back of ramp-up of Discovery sports utility vehicle, Velar sports utility vehicle, new Range Rover Sport sports utility vehicle, and E-Pace compact sports utility vehicle (over next 12-15 months). Ashok Leyland, the third largest commercial vehicle manufacturer, has also retained a positive outlook from market participants as the company beat estimates of Jan-Mar earnings and posted a net profit of 4.8 bln rupees. Company maintains its positive outlook for 2017-18 (Apr-Mar) and is optimistic that the industry will grow at nearly 10-15% in the current financial year led by strong economic growth, mining and infrastructure activities.
Source : Cogencis Information Services Ltd.