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Informist, Friday, May 2, 2025

MUMBAI – Automobile stocks are expected to move sideways next week. Investors will continue to focus on earnings for the March quarter in the near-term due to lack of fresh triggers. In the coming week, four companies that are a part of Nifty Auto index--Mahindra & Mahindra, MRF, Bharat Forge, Escorts Kubota--will report their earnings. However, investor sentiment is dented due to the continuous slowdown in sales of automobile companies, although there are some exceptions.

In April, domestic sales of the companies showed weakness while exports of most companies rose significantly. Analysts expect this weakness to continue in the coming months as well. Among two-wheeler makers, sales of only TVS Motor Co. and Eicher Motor's Royal Enfield picked up. Bajaj Auto and Hero MotoCorp reported weak monthly sales in April. But, the commercial vehicles segment of Bajaj Auto showed some growth.

Among passenger vehicle-makers, Maruti Suzuki India and Mahindra & Mahindra reported strong growth in both domestic and overseas markets. Ashok Leyland and Escorts Kubota reported a decline in their sales volume for April. This weakness in sales is likely to continue in the coming months with the monsoon season approaching, analysts said.

In the near-term, passenger vehicles segment of M&M and Tata Motors will be under pressure, Saral Seth, a research analyst at IndSec Securities & Finance, said. On the other hand, TVS, Eicher Motors and Maruti Suzuki will likely continue to gain market share, he said.

On Friday, the Nifty Auto closed slightly lower at 22286.50 points. The index rose nearly 1.3% this week, same as the benchmark Nifty 50 index. Balkrishna Industries was the top gainer for the week, while Exide Industries was the worst performer. Nifty Auto index is expected to find support at 21900 points and face resistance at 22700 points, Seth said.

M&M is scheduled to report its March quarter earnings on Monday. The company is expected to report a 21% rise in its net profit and a near 19% rise in revenue. Sequentially, the net profit and revenue are seen falling 18% and 2%, respectively.

TOP HEADLINES

* Ashok Leyland total sales contract in Apr on fall in sales of trucks, buses
* Bajaj Auto sales volume in April falls on year after rising in prev 3 months
* Hero MotoCorp sales in April slump to 4-yr low due to production shutdown
* Ola Electric says Roadster X motorcycle deliveries to start in May
* Analyst Concall:Sona BLW sees tariff to impact 3% sales from US in 12-18 mos
* IPO Alert: Ather Energy issue subscribed 1.43 times by end of final day
* Earnings Review: Sona BLW PAT growth at 10-qtr low, sales dn on supply snag
* Uno Minda to invest INR 1.14 bln for 70% stake in JV with Suzhou Inovance
* CIE Automotive Jan-Mar consol PAT falls 10.4% YoY as sales fall 6.4%
* Endurance Tech to set up lithium-ion battery mfg plant in Maharashtra
* IPO Alert: Ather Energy issue subscribed 28% as of second day
* HC bars Gensol Engg, BluSmart from creating third-party rights in 95 EVs
* Ola Electric launches "72-hour Rush" sale with discounts of up to INR 40,000
* Analyst Concall: KPIT Tech sees growth opportunity in China
* KPIT Tech partners with Mercedes-Benz Research for software-defined vehicles
* Analyst Concall: TVS Motor expects to beat industry sales growth FY26
* Earnings Review: PLI incentives boost TVS Motor's Jan-Mar PAT by 76% on year
* Earnings Review: KPIT Tech consol PAT up 31% QoQ, highest growth in 17 qtrs
* M&M mgmt says SML Isuzu to remain listed, is a strong strategic fit for co
* M&M to acquire 59% stake in SML Isuzu for INR 5.55 bln for INR 650 per share
* JSW MG Motor India says SUV the Hector now E20 fuel compliant
* Earnings Outlook:KPIT Tech may see modest rebound; PAT, sales seen up 4% QoQ
* Analyst Concall: Maruti Suzuki hopes steel cos don't use duty to hike prices
* Maruti Suzuki's Bhargava doubts tax breaks enough to spur small car sales
* Earnings Review: Maruti Suzuki's PAT contracts in March qtr as expenses bite
* Data Alert: Domestic air passenger traffic up 10.4% on yr to 14.5 mln in Mar
* HC restrains Gensol Engg, BluSmart from alienating Orix's 175 e-vehicles
* Escorts Kubota to hike price of tractors other than Kubota brand from May 1
 

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:

End

Reported by Gopika Balasubramnium

Edited by Ashish Shirke

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