Automobiles Sector Check - Demand Drivers Remain In Place: Motilal Oswal

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.The auto sector clocked a healthy earnings growth of 96% YoY in FY24 backed by steady volume growth, improved mix, pricing discipline, and benign input costs. This is also reflected in the outperformance of the Auto index (by 45%) relative to Nifty over the last 12 months. Apart from this, there have been sector-specific events that have driven the sub-sector outperformance relative to Nifty..It is also now an established fact that the majority of easy gains in the Auto OEM stocks are now behind us, as we have witnessed significant volume growth across segments over the last two years, and input costs also appear to have bottomed out. Hence, one will have to make selective micro strategies to outperform from hereon. Against this backdrop, Maruti Suzuki is our top pick in auto OEMs as:we expect it to continue outperforming the PV segment aided by new launches;its improved mix will help margins sustain at elevated levels; and,it could be the key beneficiary if the government decides to reduce GST on hybrid vehicles. .We also like Ashok Leyland as:we anticipate a revival in CV demand by H2 FY25 after the near-term weakness; andits valuations are attractive compared to peers. We are also positive on Mahindra & Mahindra given:the continued strong demand momentum in UVs; anda likely revival in the tractor segment in FY25, after the corrected base in FY24..Click on the attachment to read the full report:.Krishna Institute of Medical Sciences - Growth To Improve: Prabhudas Lilladher.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 Sector Check - Demand Drivers Remain In Place: Motilal Oswal

Reiterate our positive outlook on commercial vehicles; prefer passenger vehicle stocks over two-wheelers

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