Autos
Brokerage: Nomura
The brokerage observed that passenger vehicles and two wheeler sales remained healthy, but M&HCVs disappointed in the month of May. PVs reported over 12 percent year on year volume growth, though lower than the estimate of 16 percent. It believes there may be de-stocking effect on sales in May 2017 ahead of GST. 2-wheeler volume growth at 11% year on year beat our estimate of 9%. Key driver leading 2-wheeler growth is Honda Motorcylces, it added. M&HCV wholesales may be subdued for few months on weak demand trends, the brokerage house observed.
Brokerage: Goldman Sachs
The brokerage house said that it had buy calls on Maruti Suzuki, Eicher Motors, Ashok Leyland and Mahindra & Mahindra. It had a sell call on Hero MotoCorp and Bajaj Auto. It observed that May’s volume performance remained healthy with double digit growth in two-wheelers. But dispatches in June could see a pullback ahead of GST implementation. Having said that, the volumes could recovery from July, it observed.
Brokerage: Deutsche Bank
The global research firm highlighted the double digit volume growth, while Maruti outperformed once again. It forecast FY18 tractor growth at 12% YoY; FY18 SUV growth at 13% YoY. It believes that Maruti’s strong volume/mix momentum should sustain CMP performance.
Brokerage: Credit Suisse | Rating: Outperform | | Target: Rs 585
The brokerage house sees alleviation of pricing pressure on Voltas’ range. It has revised margin estimates from projects to 6 percent from 5 percent, and unitary cooling to 12.5 percent from 11.5 percent. It has included 49% of potential earnings from durables joint venture (JV) with Arcelik. It forecast earnings change for FY18/19 by about 5 percent / 14 percent.
Brokerage: Citi | Rating: Buy | Target: Rs 1,640
The brokerage house said that the company was confident of the growth outlook in the near future. The push for affordable housing will benefit it due to large customer base in the prescribed criteria, it added. Having said that, it believes that fees to continue to be sluggish as major part of fee growth is derived from corporate lending.
Brokerage: Nomura | Rating: Neutral | Target: Rs 320
The research firm is forecasting 4.2/5.9 percent year on year growth in production/offtake in FY18 at 577.3 million tonnes/575.4 million tonnes.
Brokerage: Macquarie | Rating: Neutral | Target: Rs 242
The global financial services firm is building in a recovery but believes consensus is too optimistic. It expects consensus earnings to continue to witness downgrades. Wage negotiation & FSA price hike are key catalysts for the stock.
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