NDTV Profit'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 NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Auto OEMs are expected to deliver just ~6% YoY volume growth in Q3 FY25E despite the festive season. While two-wheeler demand turned weak in Q3, passenger vehicle OEMs saw a better demand uptick, especially in the festive season. Tractor demand saw a marked revival in Q3, a clear indicator of improving rural sentiment. However, CVs continued to see weak demand.
Given stable input costs QoQ, we expect OEMs within our coverage universe to post stable margins. Revenue/Ebitda/PAT for our coverage companies (excluding Jagura LandRover) are expected to grow ~9%/9%/6% YoY in Q3 FY25. Mahindra and Mahindra Ltd. (+30%), Eicher Motors Ltd.(+12%) and Maruti Suzuki India Ltd. (+11%) are likely to outperform peers.
On the other hand, Hyundai Motors is likely to see the steepest earnings decline of 29%.
For auto ancillaries under our coverage, we expect ~11%/3%/10% YoY growth in revenue/Ebitda/PAT in Q3 FY25. We expect Samvardhana Motherson International (+47%), Endurance Technologies (+38%), Balkrishna Industries (+24%), Happy Forgings (+18%), Exide Industries (+17%) and Bosch (+15%) to be the top earnings growth drivers.
On the other hand, tyre companies are likely to continue to post earnings declines due to persistent input cost pressure. In Q3 FY25, we have further cut estimates for seven out of 26 companies, with no material upgrades, as we remain cautious on the prospects of a meaningful demand recovery across segments.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit 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 NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.