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 original equipment manufacturers reported volume growth of ~10% YoY in Q1 FY25, with broad-based growth in almost all the segments. Two-wheelers outperformed with ~11% YoY growth, followed by passenger vehicles with 6% YoY growth. Commercial vehicle and tractors grew by 4% each. We expect a volume CAGR of 9%/6%/5% for two-wheelers/passenger vehicles/tractors over FY24-26. For three-wheelers/commercial vehicles, we anticipate a volume CAGR of 8%/7% over the same period.
Revenue/Ebitda/PAT for our coverage universe is expected to grow ~9%/14%/18% YoY during the quarter. Ebitda margin for our Auto OEM universe (excluding JLR) is expected to improve 170 bp YoY to 13.1% (stable QoQ), driven by moderate commodity costs, a favorable product mix and operating leverage.
For auto ancillaries, Ebitda margin is expected to largely remain stable YoY, but it may decline 70 bp QoQ.
We noted a rise in key commodity prices in Q1 FY25 QoQ, such as aluminum (+15%), copper (+16%), lead (+5%), rubber (+5%) and platinum (9%). We expect the impact of rising input costs to be visible from Q2 onwards.
Within OEMs, we expect two-wheeler OEMs (excluding Eicher) and Maruti Suzuki India Ltd. to outperform peers.
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.
