Automobiles Sector Check - Earnings Recovery Across The Space: ICICI Securities

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Post getting impacted by 18-20% total cost of ownership inflation across sub-segments in the sector along with demand disruption on account of Covid-19 led lockdowns, demand across majority of the sector has gone back to levels seen ~10 years ago. Elevated raw material costs further added to the weak operating leverage of the players. We believe, in FY23E-FY24E, with no major driver of total cost of ownership and stabilising raw material basket cost, auto original equipment manufacturer space is set for both demand and margin revival. Within the space, we are more positive on commercial vehicles on account of sharp cyclical revival expectation. Electric two-wheeler mix is expected to reach ~10% of two-wheelers by FY24E, post which the real upsurge is likely to happen as local battery pack manufacturing kick starts. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint 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 BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Automobiles Sector Check - Earnings Recovery Across The Space: ICICI Securities

Automobiles Sector Check - Earnings Recovery Across The Space: ICICI Securities

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