K.Karthik Raja - Rupeedesk Advisory: Auto Stocks Outlook

Showing posts with label Auto Stocks Outlook. Show all posts

Auto Stocks Outlook for the week – 18 to 22.08.2014

( www.rupeedesk.in )

Stocks of automobile manufacturers are seen continuing their upward momentum next

week on the back of strong Apr-Jun earnings reported by index heavyweights such as

Tata Motors, Mahindra & Mahindra, and Maruti Suzuki India.

Tata Motors, riding high on a phenomenal financial performance by arm Jaguar Land

Rover Automotive Plc, reported a consolidated Apr-Jun net profit of nearly 54 bln

rupees, more than three times the figure in the same quarter last year. Consolidated net

sales stood at 641.51 bln rupees, up 37.2% on-year, mainly propelled by higher JLR

realizations.

Maruti Suzuki India also beat market estimates to report a 20.7% on-year rise in its net

profit for the quarter ended June at 7.62 bln rupees. An improvement in realisation on

account of a better product mix helped Mahindra & Mahindra post a net profit of 8.82 bln

rupees for the latest quarter.

Stocks of automobile companies will continue to be pulled by the heavyweights. Also,

consumer demand for automobiles, especially passenger cars and two-wheelers, has

picked up, which is seen aiding share values.

Over the past week, the BSE-auto index has risen 5.2%, while the broader markets rose 3%. This trajectory is expected to continue in the week ahead.

Auto Stocks Outlook for the week – 11 to 14.08.2014

( www.rupeedesk.in )

Automobile manufacturers' stocks are seen gaining in the week ahead as consumer

sentiment, particularly for passenger cars and utility vehicles has improved. Yesterday,

Society of Indian Automobile Manufacturers released sales figures for July. Local

passenger car sales grew for the third consecutive month in July, up 5.04% on year to

137,873 units.

The Industry body sees domestic passenger car sales growing 6-7% in 2014-15 (Apr-

Mar), Director General Vishnu Mathur said yesterday. In 2013-14, passenger car sales

decreased 4.65%, the second consecutive annual fall.

Stocks of automobile manufacturers will also get direction from the Apr-Jun earnings that

Tata Motors declares on Monday. Tata Motors' consolidated net profit for the quarter

ended June is likely to double year on year to 37.43 bln rupees on the back of strong volumes of UK-based subsidiary Jaguar Land Rover.

Auto Stocks Outlook for the week – 11 to 14.08.2014

( www.rupeedesk.in )

Automobile manufacturers' stocks are seen gaining in the week ahead as consumer

sentiment, particularly for passenger cars and utility vehicles has improved. Yesterday,

Society of Indian Automobile Manufacturers released sales figures for July. Local

passenger car sales grew for the third consecutive month in July, up 5.04% on year to

137,873 units.

The Industry body sees domestic passenger car sales growing 6-7% in 2014-15 (Apr-

Mar), Director General Vishnu Mathur said yesterday. In 2013-14, passenger car sales

decreased 4.65%, the second consecutive annual fall.

Stocks of automobile manufacturers will also get direction from the Apr-Jun earnings that

Tata Motors declares on Monday. Tata Motors' consolidated net profit for the quarter

ended June is likely to double year on year to 37.43 bln rupees on the back of strong volumes of UK-based subsidiary Jaguar Land Rover.

Auto Stocks Outlook for the week – 07 to 11.Jul.2014

Auto Stocks Outlook for the week – 07 to 11.Jul.2014

Stocks of major automobile manufacturers are seen moving on news and expectations
related to Thursday's presentation Union Budget for 2014-15 (Apr-Mar). Auto stocks will
react positively if measures such as implementation of goods and services tax are
announced in the Budget. Positive movement will also be seen based on a growth-oriented
Budget, as that would encourage people in the medium-term to engage in car purchases.

Last week, the government announced an extension to the reduced excise duty on vehicles
up to Dec 31, and thus a further extension of the duty sop to Mar 31 is not expected in the
Budget. The month of June provided cheer for the industry in the form of impressive sales
volumes, and so positive measures for the sector, if announced in the Budget, could result
in a rally through the following week.

Most automakers reported on-year growth in their sales numbers, with only Mahindra &
Mahindra Ltd, and Tata Motors Ltd being the exceptions. The counter of Tata Motors is,
however, seen positive in the coming week, on news the company was working to revamp
its portfolio doing the rounds. Maruti Suzuki India Ltd's counter is expected to trade in a
narrow range ahead of the Budget. The bias is seen positive, backed by its sales numbers of
June.

Auto Stocks Outlook for the week - 23 to 27.06.2014

(www.rupeedesk.in)

Stock of major automobile manufacturers are seen rising in the week ahead as the market

sentiment remains positive and broader indices are expected to gain. Over the past few

weeks, stocks of automobile companies witnessed an upward rally as the consumer

sentiment in the passenger car and two-wheelers markets has improved and consumers

have started making purchases.

Stocks of automobile companies corrected just a little over the past week, with the BSE's

automobile index falling 2.1%. But this fall is expected to be arrested next week as the

growth spiral will continue to drive broader markets. Stocks of Bajaj Auto are expected

to show a marked gain next week as the surface transport ministry is expected to come

out with regulations for quadricycles. Bajaj Auto's Managing Director Rajiv Bajaj has

said the company plans to launch quadricycles in India during October and exports will

follow soon.

Auto Stocks Outlook for the week – 09 to 13.Jun.2014

(www.rupeedesk.in)

Stocks of major automakers are likely to trade in line with broader markets next week.

Auto stocks have been moving in line with broader markets over the past week, and this

movement is likely to continue next week, as there are no specific triggers on the horizon.

Despite being rate sensitive, automobile stocks move in line with broader markets and

have maintained this traditional trajectory of movement. In the near term, the market will

keep an eye on the Union Budget for 2014-15 (Apr-Mar), likely to be presented in July.

Automobile manufacturers will hope the government to continue with the excise duty

cuts introduced in the interim budget.

Auto Stocks Outlook for the week - 19 to 23.May.2014

Auto Stocks Outlook for the week - 19 to 23.May.2014
(www.rupeedesk.in)

Stocks of most automobile companies are likely to move sideways next week

as euphoria over the Bharatiya Janata Party-led National Democratic Alliance's

victory in the Lok Sabha polls has been priced in. This week, in the run-up to

the announcement of the results yesterday, auto stocks rose 0.6-

12.5%. According to the Election Commission of India website, the NDA is

slated for a landslide victory. The general mood is that of optimism, but

fundamentally nothing is going to change in the auto space in the next few

months. Next week there could be some profit booking in some stocks. We've

seen some of that already yesterday.

The weak investment scenario of the past few years is likely to change with the

arrival of the new government. The new government would likely take several

bold steps to spur recovery in the infrastructure and manufacturing sector. As a

result, in the medium-to-long term, the automotive sector, and especially the

commercial vehicle segment is seen benefitting. Next week, Ashok Leyland

will be in focus, as the commercial vehicle manufacturer will detail its earnings

for Jan-Mar on Thursday.

We continue to prefer Maruti Suzuki India, Hero MotoCorp and Tata

Motors. However, Bajaj Auto, which detailed its Jan-Mar earnings on

Thursday, is likely to be subdued over the next few days. The motorcycle

maker disappointed the Street, posting a net profit of 7.64 bln rupees, down

0.2% year on year, and below expectations of 7.99 bln rupees.