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Auto sector: Are you riding the right stocks?
Markets appear to be doing rather well as we get closer to earnings season. Amidst such an environment, the auto pack is slated to performer better in the last quarter. Experts and analysts are rather upbeat on the sector going forward and discuss their favourite picks.
Markets opened strong this morning, but have slipped however, on account of profit booking seen in select stocks. But on the whole, markets appear to be doing rather well as we get closer to earnings season. Amidst such an environment, the auto pack is slated to be one of the better performers of the last quarter.
Experts and analysts are rather upbeat on the sector going forward and discuss their favourite picks. General consensus indicates that Maruti is definitely among the favourites, along with Mahindra and Mahindra and Tata Motors .
Maruti has reported a robust 27%YoY growth in Dec-06 domestic car sales, while lower exports dragged down total sales growth to 24%. Broking house, CLSA is extremely upbeat on this stocks and has placed an 'outperformer' rating on Maruti Udyog.
The house views Maruti as a longer-term play on the domestic consumption theme. Similarly, Citigroup Equity Research has recommended buy rating on Maruti Udyog aswell.
Amit Dalal of Amit Nalin Securities is bullish on the four-wheelers stocks, as oppose two- wheelers. "If one has to remain invested in the auto space, it is in the four-wheelers and medium and heavy commercial vehicles that will continue to give us good numbers. If the GDP growth has to continue, that growth is finally going to lead to transport of goods and for that you need trucks," he explains.
Auto analyst at Edelweiss Capital, Ashutosh Goel, expects Maruti Udyog to see around 18-20% growth in the next quarter. However he prefers to wait and watch for the excise cut in the Budget that is expected before making any further predictions on the stock.
Maruti has reported a robust 27%YoY growth in Dec-06 domestic car sales, while lower exports dragged down total sales growth to 24%. Broking house, CLSA is extremely upbeat on this stocks and has placed an 'outperformer' rating on Maruti Udyog.
