Automobiles Q4 Results Preview: Motilal Oswal Projects An Uneventful Quarter; Maruti Suzuki Among Top Picks

Except for tractors, which continue to witness healthy demand, all other segments continue to see a subdued demand environment. With the ongoing global tariff war, there is likely to be prolonged uncertainty on the global automotive demand outlook, and hence for ancillary companies with high global exposure, as global OEMs look to adjust their supply chains to the new reality. Hence, Motilal Oswal prefers to avoid companies that have material global exposure, at least in the near term..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 within our coverage universe are expected to deliver ~6% YoY volume growth in Q4 FY25. However, the end-market demand in Q4 has been weaker than the headline number suggests. Overall, growth was largely driven by new launches from Mahindra and Mahindra, TVS and Royal Enfield, while Hero MotoCorp, Bajaj Auto, Hyundai Motors India and Maruti Suzuki posted subdued growth. Commercial vehicles continued to post a decline in volumes. For our OEM coverage universe (excluding Jaguar LandRover), we expect revenue/Ebitda/PAT to grow ~7%/5%/2% YoY in Q4 FY25. Within this, TVS (+39%), M&M (+19%), Eicher (+20%) and Ashok Leyland (+14%) are likely to outperform peers in terms of earnings growth. On the other hand, Hyundai and Maruti Suzuki are likely to post an earnings decline.For auto ancillaries, we expect our coverage universe to post ~7% growth in revenue and a decline of 4%/10% YoY in Ebitda/PAT in 4Q. It is important to highlight that only five out of 16 companies are likely to post earnings growth, with no company expected to post double-digit earnings growth.  Overall earnings estimate cuts have been moderate in this quarter, with CEAT (-11%/- 8%) and MRF (-11%/-13.5%) seeing the highest cuts for FY25E/FY26E. Meanwhile, most other players have seen single-digit earnings cuts..Click on the attachment to read the full report:.Capital Goods Q4 Results Preview: Awaiting A Broad-Based Activity Revival — Motilal Oswal.DISCLAIMERThis 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.

Automobiles Q4 Results Preview: Motilal Oswal Projects An Uneventful Quarter; Maruti Suzuki Among Top Picks

In the auto ancillary space, Motilal Oswal prefers Endurance Technologies and Happy Forgings, owing to their strong order backlog and ability to outperform core segments.

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