Auto Stocks Outlook for the week - 24.02.2014 - 28.02.2014

Stocks of major automakers are likely to take cues from the broader market, with market
leader Maruti Suzuki India Ltd trading in a positive bias. According to a Cogencis report
today, Maruti Suzuki has got over 13,000 bookings for the Celerio till date since it was
launched. There is no trigger for the auto stocks next week. It is a lean period ahead
before the elections. For the first three days next week, the stocks will follow the broader
market. Markets are shut Thursday on account of Mahashivratri. The stocks are likely to
react only on Friday on expectation of good sales numbers of frontline automakers.

The stock of Maruti Suzuki India Ltd is expected to be positive on expected good sales
figures for the February. With its newly-launched Celerio clocking a more-than-expected
response, Maruti Suzuki is likely to post good sales numbers due to despatches of the
new Celerio to the dealers. Hero MotoCorp Ltd had launched revamped Splendor and
Passion motorcycles on Feb 5 at the 12th Auto Expo. It is expected to show good
numbers for February as its demand should be able to match the production levels. As the
commercial vehicles segment remains subdued, Ashok Leyland Ltd is likely to disappoint
the Street in terms of sales this month. Same for Tata Motors Ltd. Although, not much is
expected from domestic sales, its global sales are likely to be driven by the Jaguar Land
Rover yet again.

Tata Motors Ltd's counter continues to be driven by the performance of its subsidiary
JLR, which sold a record 425,000 cars globally during 2013, thereby providing a balm to
the poor standalone domestic performance of the parent company. JLR contributes a
lion's share to the company's revenues. Nothing very special is expected from Mahindra
& Mahindra Ltd for this month. The company's numbers should be mixed bag. Tractors
side sale will shore up sales numbers.

Auto Stocks Outlook for the week - 08.07.2013 - 12.07.2013

www.rupeedesk.in

 Stocks of most automobile companies are expected to trade with a positive bias next week due to a variety of reasons.Auto stocks will perform better than the indices next week. The counter of India's largest carmaker Maruti Suzuki India Ltd is expected to trade up on the depreciation of yen, even as the rupee, too, depreciates.

The yen is depreciating more than the rupee. So that is a plus for Maruti. They should gain from this. The rupee has depreciated around 10% against the US dollar since Jan 1. For automakers with good exports, such as Bajaj Auto Ltd, the rupee fall has been beneficial. Bajaj Auto's counter looks positive also on rumours that the government will soon notify norms for quadricycles. Mahindra & Mahindra Ltd is another major automaker that has seen an upside lately, thanks to "good" tractor sales, even though sales of both its commercial vehicles and passenger vehicles have been down. The on year rise in sales is primarily on a low base from last year. The good monsoon this year has resulted in high sales within the agriculture sector.

The counter of commercial vehicle manufacturer Ashok Leyland Ltd is expected to continue to trade with a negative bias, more so on the Delhi government hinting at importing buses from Europe to induct in the fleet of the state transport department. Delhi Chief Minister Sheila Dikshit said the government was not satisfied with the new buses offered by the Indian manufacturers, and that it might consider importing. Ashok Leyland, along with Tata Motors Ltd, is currently a supplier of buses to Delhi government's Delhi Transport Corp.

Automobile manufacturers reported yet another month of dismal sales, with almost all companies showing on year fall in despatches during June. The subsequent fall in counters of those companies, however, has been factored in, and the data to be released by Society of Indian Automobile Manufacturers on Jul 11 does not look to have any significant impact on the stocks.