Published on Thu, Mar 05, 2009 at 15:21 | Source : Moneycontrol.com
Updated at Thu, Mar 05, 2009 at 18:17
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Reliance Money negative on two wheeler sector
Reliance Money has maintained its negative outlook on the sector. The benefit of excise cut along with new launches in the form of variants has led the growth for companies in the two wheeler space.
Reliance Money has maintained its negative outlook on the sector. The benefit of excise cut along with new launches in the form of variants has led the growth for companies in the two wheeler space.
Reliance Money's report on two wheeler:
February 2009 remained as another month where two wheeler companies reported improved performance compared to earlier months. The benefit of excise cut along with new launches in the form of variants has led the growth for companies in the two wheeler space.
The excise duty cut benefit extended beyond 31st March 2009 is also a positive indication for the two wheeler industry and we believe that it will help the companies in reporting good volumes in the near future.
Exports on the other hand have started slipping down in line with the slowdown in global economy. Exports of Bajaj Auto Limited fell by 19.7% y-o-y while TVS Motor Company grew robustly by 32.7%. It is interesting to note that on a m-o-m basis the two wheeler industry has reported growth of 9.4% which we believe could be initial positive signal for the industry, but we would like to wait for further confirmation and maintain our negative outlook on the sector.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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