Auto Stocks Outlook for the week – 08 to 12.05.2017
Auto Stocks Outlook for the week – 08 to 12.05.2017
( www.rupeedesk.in )
The shares of most automobile companies are seen trading with a negative bias next week. Shares of India's largest two-wheeler manufacturer, Hero MotoCorp Ltd, are likely to be in focus, as the company is expected to report weak earnings for the quarter ended March due to lower demand in rural areas, its primary market. Hero MotoCorp's topline for Jan-Mar is expected to decline by 6% on year to 70.42 bln rupees on the back of a 6% on-year drop in volumes, which were impacted by demonetisation. We expect the company's net profit to fall by 12% on year to 7.39 bln rupees. In April, the company's total sales fell 3.5% on year to 591,306 units. Eicher Motors Ltd, the market leader in the premium motorcycles segment. The sustained demand for high-margin Royal Enfield motorcycles continues to aid a strong growth outlook for Eicher Motors. The company is set to commission its new Chennai unit in August and this will further increase its output capacity to 825,000 motorcycles in the current financial year started Apr 1. In the passenger vehicle segment, Maruti Suzuki India Ltd continues to soar due to its newfound success in the premium car segment, riding on the Baleno hatchback and the Vitara Brezza compact sports utility vehicle. The company's portfolio is set to get a new addition with the launch of the all-new DZIRE compact sedan on May 16.
Source : Cogencis Information Services Ltd.
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Auto Stocks Outlook for the week – 08 to 12.05.2017
( www.rupeedesk.in )
The shares of most automobile companies are seen trading with a negative bias next week. Shares of India's largest two-wheeler manufacturer, Hero MotoCorp Ltd, are likely to be in focus, as the company is expected to report weak earnings for the quarter ended March due to lower demand in rural areas, its primary market. Hero MotoCorp's topline for Jan-Mar is expected to decline by 6% on year to 70.42 bln rupees on the back of a 6% on-year drop in volumes, which were impacted by demonetisation. We expect the company's net profit to fall by 12% on year to 7.39 bln rupees. In April, the company's total sales fell 3.5% on year to 591,306 units. Eicher Motors Ltd, the market leader in the premium motorcycles segment. The sustained demand for high-margin Royal Enfield motorcycles continues to aid a strong growth outlook for Eicher Motors. The company is set to commission its new Chennai unit in August and this will further increase its output capacity to 825,000 motorcycles in the current financial year started Apr 1. In the passenger vehicle segment, Maruti Suzuki India Ltd continues to soar due to its newfound success in the premium car segment, riding on the Baleno hatchback and the Vitara Brezza compact sports utility vehicle. The company's portfolio is set to get a new addition with the launch of the all-new DZIRE compact sedan on May 16.
Source : Cogencis Information Services Ltd.
