Auto sector will languish under near-term pressures: Angel
Published on Mon, Jul 07, 2008 at 11:51 | Source : Moneycontrol.com
Updated at Tue, Jul 08, 2008 at 10:47
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Auto sector will languish under near-term pressures: Angel
According to Angel Broking's report on Automobile Sector, We believe the Auto sector will languish under near-term pressures with inflation expected to continue to remain high in the ensuing months.
According to Angel Broking's report on Automobile Sector, We believe the Auto sector will languish under near-term pressures with inflation expected to continue to remain high in the ensuing months.
Angel Broking's report on Automobile Sector:
We believe the Auto sector will languish under near-term pressures with inflation expected to continue to remain high in the ensuing months.
Hurdles to growth:
Inflation, Interest Rates and Liquidity
Fuel Price hike
Soaring Raw Material prices
Large Capex to take a toll on Returns
In conclusion, while rising input costs, interest rates and fuel costs are concerns, our cost of ownership analysis suggests that the impact this far has been moderate. We believe that it will spread with a lag effect and would change the near-term demand outlook. Nonetheless, CVs are far more exposed to such macro economic factors than the PVs. Hence, in view of these uncertainties, we believe that the Passenger Vehicle segment offers better growth visibility compared to the Commercial Vehicle and Two-wheeler segments.
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.
