Auto Stocks Outlook
Seen moving in tight range; Eicher, M&M likely outliers
This story was originally published at 21:13 IST on 22 November 2024
Register to read our real-time news.Informist, Friday, Nov. 22, 2024
MUMBAI – Shares of automobile companies are seen trading in a tight range in the coming week following their mixed performance in the Jul-Sept quarter, analysts said. Eicher Motors Ltd. and Mahindra & Mahindra Ltd. are expected to perform better than their peers after the two companies reported robust Jul-Sept earnings, analysts added.
Automobile stocks could see an uptick if the benchmark indices rebound, though the sector could also see selective performance from its top four or five participants, an analyst at a domestic brokerage said. The Nifty 50 and BSE Sensex rose 1.6% and 2%, respectively, this week, while the Nifty Auto index rose 2.8%.
The two-wheeler segment is poised to do better than the four-wheeler segment in the coming months. In the two-wheeler segment, analysts said, Bajaj Auto Ltd. saw a muted quarter while TVS Motor Ltd.'s earnings were decent. The demand for two-wheelers is improving; an analyst expects volumes to grow 8-10% in Oct-Mar (2024-25) in the domestic market, while exports are expected to grow 5-6% following a prolonged slowdown.
While tractors have performed well, demand in the passenger vehicle segment remains subdued, which was reflected in the latest quarterly results. M&M’s passenger vehicle segment saw a good Jul-Sept, but an analyst with a domestic brokerage said he does not expect the performance to be sustained. Passenger vehicle volumes are expected to remain muted in Oct-Mar given the high inventory levels, especially in the mid-sport utility vehicle segment. M&M is expected to announce two new electric vehicles, codenamed XEV 9e and BE 6e, in the coming week.
Analysts said the valuations of automobile companies have corrected significantly after Jul-Sept, especially for two-wheeler players. This segment is better placed than the others as valuations of stocks in this segment have corrected faster than their earnings downgrade, they said. Four-wheeler shares have space for more correction.
TOP HEADLINES
* Hyundai Motor India to set up two renewable energy plants in Tamil Nadu
* TVS Motor launches 2.2 kWh battery variant of e-two wheeler iQube in Nepal
* Bajaj Auto gets INR 22-million compounding order from RBI
* BEML wins INR 2.5 bln order from Central Coalfields to supply 48 dump trucks
* TVS Motor launches upgraded Apache RTR 160 4V at INR 139,990
* Automobile retail sales up 12% to 4.3 mln units during festivals, says FADA
* Royal Enfield announces second completely knocked-down unit in Brazil
* Analyst Concall: Hero MotoCorp gears up to drive growth with power brands
* Earnings Review: Hero MotoCorp fires on all cylinders, beats Street view
* Tata Motors denies report of new holding firm for co's PV, CV businesses
Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Apollo Tyres | 495.00 | 4.10 | 506.50 | 474.10 |
| Ashok Leyland | 223.96 | 2.90 | 228.40 | 217.00 |
| Bajaj Auto | 9,481.65 | (-)0.00 | 9,668.40 | 9,350.80 |
| Balkrishna Industries | 2,767.30 | 1.00 | 2,815.60 | 2,688.00 |
| Bharat Forge | 1,316.15 | (-)1.00 | 1,343.40 | 1,282.70 |
| Bosch | 34,317.55 | 1.40 | 34,770.70 | 33,798.40 |
| Eicher Motors | 4,986.20 | 2.10 | 5,080.70 | 4,834.70 |
| Exide Industries | 424.05 | 1.40 | 431.90 | 410.10 |
| Hero MotoCorp | 4,794.10 | 4.10 | 4,847.90 | 4,715.10 |
| Mahindra & Mahindra | 3,012.95 | 7.30 | 3,157.90 | 2,824.30 |
| Maruti Suzuki India | 11,063.60 | 0.50 | 11,278.60 | 10,719.80 |
| MRF | 124,597.00 | 3.40 | 126,164.00 | 121,754.60 |
| Samvardhana Motherson International | 165.23 | (-)0.10 | 168.30 | 160.90 |
| Tata Motors | 791.00 | 2.20 | 805.70 | 767.70 |
| TVS Motor Co. | 2,414.25 | 0.80 | 2,464.50 | 2,335.90 |
| Nifty Auto | 23554.10 | 2.80 | 24040.50 | 22845.90 |
| Nifty 50 | 23907.25 | 1.60 | 24337.90 | 23143.70 |
| BSE Sensex | 79117.11 | 2.00 | 80512.20 | 76529.20 |
End
Reported by Anand J.C.
Edited by Rajeev Pai
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
