BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Prabhudas Lilladher Report
We expect Q2 FY24 to show strong YoY revenue and margin improvement, aided by strong tailwinds from realisation, operating leverage for few original equipment manufacturer and benign commodity prices. In Q2 FY24, auto industry witnessed overall flattish volumes -1.1% on back of decline in two wheeler and Tractors. For our OEM coverage universe, we expect-
aggregate revenue to grow by plus 26% YoY (including Jaguar Land Rover; +17% excluding JLR) owing to sharp rise in average selling price from price hikes, higher volume and better mix and
Ebitda margin to expand ~320 basis points YoY (including JLR) led by lower commodity cost and superior product mix. Commodity costs continue to remain benign which should continue to aid margins.
Festive season is the next major catalyst for the automobile industry, while the expectations are high and initial trends for regional festive periods have shown positive momentum, a lot depends on the one-month festive period which starts from mid-October.
OEM have built inventory in anticipation of strong growth and higher retails would be key to avoid large inventory backlog post the festive season.
We introduce FY26E for our coverage universe, change our earnings estimates for FY24-25E for all the companies in the range of -5% to +6%.
Our top picks are Maruti Suzuki India Ltd., Tata Motors Ltd. and Ashok Leyland Ltd.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
RECOMMENDED FOR YOU
'Buy' Samvardhana Motherson To Get An Upside Of 20% Says Yes Securities, Sees Strong Growth Across Verticals
Aug 21, 2025
Here Are The Three Key Positives Why Hyundai Motor Is A 'Buy' For Yes Securities Post Q1 Results
Jul 31, 2025
Auto Q1 Preview: Tepid Quarter For Hyundai, Maruti, Tata Motors; Profits Expected To Fall 11–29%
Jul 29, 2025
JSW MG Motor Says Rare Earth Magnet Shortage Won't Impact Production In Near Future
Jul 09, 2025
POPULAR