External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

External broker reports(aggregated public sources)

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Thematic (Sector/Industry)

<div><ul><li>Q1 margin pressure likely to be lower than earlier envisaged - We refrain from comparing YoY numbers, given the low base of last year and, hence, compare numbers on a QoQ basis for all companies.</li><li><p>Outliers expected within our coverage universe in Q1 - <span style="font-size: var(--content-font-size);">We expect M&amp;M to be the best performer in Q1, with an estimated 41% growth in earnings QoQ.</span></p></li><li><p><span style="font-size: var(--content-font-size);">Q1 estimates for ancillaries - </span><span style="font-size: var(--content-font-size);">At the moment, we only have two ancillary companies under coverage.</span></p></li></ul></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Q1 margin pressure likely to be lower than earlier envisaged - We refrain from comparing YoY numbers, given the low base of last year and, hence, compare numbers on a QoQ basis for all companies.Outliers expected within our coverage universe in Q1 - We expect M&amp;M to be the best performer in Q1, with an estimated 41% growth in earnings QoQ.Q1 estimates for ancillaries - At the moment, we only have two ancillary companies under coverage.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Autos - Margin Pressure to Be Lower than Earlier Envisaged

External broker reports(aggregated public sources), Nirmal Bang

Nirmal Bang

A Relationship Beyond Broking

Nirmal Bang, one of the leading stock broking companies in India, caters to retail and institutional clients by offering them a range of financial products and services, including equities, derivatives, commodities, currency derivatives, mutual funds, IPOs, insurance, depository services and PMS.

Nirmal Bang is drawn from a diversity of professional backgrounds, and blend of experience, skill and dedication is shared with its clients. Nirmal Bang emphasizes adequate, thorough research local and world-wide developments, balancing these with the astute discovery of intrinsic values, synergies and growth. The aim is simply to help the investors to maximize their returns.

<div><ul><li>Maruti: We expect Maruti’s earnings to be relatively strong on YoY basis due to a lower base, but we expect a slight decline of 4% QoQ due to muted volume (hit by chip shortages) and pressure on profitability</li><li><p>Mahindra &amp; Mahindra (M&amp;M): M&amp;M’s reported Auto segment volume increased by ~46% YoY, driven by a good response to XUV 700 (new Launch), good CV volume and good recovery in tractor volume.</p></li><li><p><span style="font-size: var(--content-font-size);">Hero MotoCorp: We expect Hero MotoCorp’s revenue to grow by 15% QoQ, led by 17% rise in volume.</span></p></li></ul></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Maruti: We expect Maruti’s earnings to be relatively strong on YoY basis due to a lower base, but we expect a slight decline of 4% QoQ due to muted volume (hit by chip shortages) and pressure on profitabilityMahindra &amp; Mahindra (M&amp;M): M&amp;M’s reported Auto segment volume increased by ~46% YoY, driven by a good response to XUV 700 (new Launch), good CV volume and good recovery in tractor volume.Hero MotoCorp: We expect Hero MotoCorp’s revenue to grow by 15% QoQ, led by 17% rise in volume.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Auto/Auto-Ancillary Sector - Spillover of RM Inflation to Impact Margins

<div><ul><li>Two-wheeler demand trends: A consistent feedback that we received from most of the dealers is that 2W demand is picking up QoQ in Q1, although, it is still well below pre-COVID levels</li><li><p>Segmental trends: While 2W demand is seeing an uptick QoQ in Q1, the sense we got is that motorcycle demand is stronger than scooters</p></li><li><p><span style="font-size: var(--content-font-size);">Player-wise performance trends: As per our dealer feedback, Hero MotoCorp is doing better than peers</span></p></li></ul></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Two-wheeler demand trends: A consistent feedback that we received from most of the dealers is that 2W demand is picking up QoQ in Q1, although, it is still well below pre-COVID levelsSegmental trends: While 2W demand is seeing an uptick QoQ in Q1, the sense we got is that motorcycle demand is stronger than scootersPlayer-wise performance trends: As per our dealer feedback, Hero MotoCorp is doing better than peersContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Autos - Two Wheelers: Some Green-Shoots Visible

External broker reports(aggregated public sources), Emkay Global Financial Services Limited

Emkay

Emkay Global Financial Services Limited

Emkay Global Financial Services Ltd. is a leader in the financial services sector, actively creating wealth for our clients for over two decades. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<div><div><div><div><ul><li>Exports: Management expects double-digit growth in retail sales, led by healthy demand in key markets and a continuous focus on network expansion.</li></ul><div><div><div><div><ul><li>Domestic 2Ws: Management expects strong growth in volumes, with a focus on profitable categories.</li><li>The share of first-time buyers stands at ~60% of demand, while the remaining portion is contributed by replacement/additional vehicle buyers.</li></ul><ul style="list-style-type: none;"><li> </li></ul></div></div></div></div></div></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Exports: Management expects double-digit growth in retail sales, led by healthy demand in key markets and a continuous focus on network expansion.Domestic 2Ws: Management expects strong growth in volumes, with a focus on profitable categories.The share of first-time buyers stands at ~60% of demand, while the remaining portion is contributed by replacement/additional vehicle buyers. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bajaj Auto - Domestic 2W Recovery on Track

<div><div><div><div><ul><li>Results beat expectations; gross margin ahead of our estimate: Reported revenue at Rs79.7bn was ahead of broader expectations.</li></ul><div><div><div><ul><li>Initial signs of demand recovery in 2Ws; Management remains cautious</li></ul><div><div><div><div><ul><li>Valuation and outlook: At CMP, the company is trading at 16x FY24E core EPS, which is broadly in line with its long-term mean multiple.</li></ul></div></div></div></div></div></div></div></div></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Results beat expectations; gross margin ahead of our estimate: Reported revenue at Rs79.7bn was ahead of broader expectations.Initial signs of demand recovery in 2Ws; Management remains cautiousValuation and outlook: At CMP, the company is trading at 16x FY24E core EPS, which is broadly in line with its long-term mean multiple.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bajaj Auto - Exports Growing on Strong Footing; Focus Shifting to EVs

India

Tata Motors Limited manufactures cars and commercial automotive vehicles in India. The Company designs, manufactures and sells heavy commercial, medium commercial and small commercial vehicles including trucks, tankers, vans, buses, ambulances and minibuses. Tata also manufactures small cars and sports utility vehicles.

Maruti Suzuki India Limited manufactures and exports automobiles. Maruti collaborated with Suzuki of Japan to produce affordable cars for the average Indian.

Hero MotoCorp Ltd. designs, manufactures and distributes motorcycles. The Company's products also include motorcycle parts and accessories.

TVS Motor Company Limited manufactures motorcycles, mopeds, and scooters. The Company provides spark ignition operated outboard motors, combustion spark ignition engines, critical engines, and transmission parts. TVS Motor Company serves customers in India.

Mahindra & Mahindra Ltd. manufactures automobiles, farm equipment and automotive components. The Company's automobile products include light, medium and heavy commercial vehicles, jeep type vehicles and passenger cars. Mahindra & Mahindra also manufactures agricultural tractors, agricultural implements, internal combustion engines, industrial petrol engines, spare parts and machine tools.

Eicher Motors Ltd. manufactures light commercial vehicles which are sold domestically and are also exported to other countries. Eicher Motors also manufactures two-wheelers and automotive gears.

Maharashtra Scooters Ltd. manufactures and distributes two-wheeler scooters.

Atul Auto Ltd. manufactures three-wheeled commercial diesel vehicles.

Bosch Limited manufactures a wide range of automotive parts. The Company'products includes fuel injection pumps, spark plugs, including nozzles and nozzle holders, elements, delivery valves, filters and filter inserts, glow plugs, starter motors, alternators and wipers. Bosch also manufactures hydraulics and pneumatic equipment and electric power tools and fixtures.

Hindustan Motors Limited manufactures cars, trucks, diesel engines, bulldozers, cranes, dumpers, compactors, shovels and scrapers. The Company also manufactures a wide range of steel products, axle assemblies, special purpose machine tools, hydraulic pumps and hydraulic valves.

PT Astra International Tbk assembles and distributes automobiles, motorcycles, and their related spare parts.  Through its subsidiaries, the Company also operates in the mining, development of plantations, financial and information technology.

NISSAN MOTOR CO., LTD. manufactures and distributes automobiles and related parts. It also provides financing services. Nissan delivers a comprehensive range of products under various brands. The Company manufactures in Japan, the United States, Mexico, the United Kingdom and many other countries.

Geely Automobile Holdings Limited operates as a passenger vehicles manufacturing company. The Company provides passenger vehicles development, manufacturing, sales, and other services. Geely Automobile Holdings also exports passenger vehicles.

Great Wall Motor Company Limited, through its subsidiaries, manufactures and sells pick-up trucks and sport-utility vehicles (SUVs) in China under branded names. The Company also researches and develops, and manufactures principal automotive parts and components for use in the assembly of pick-up trucks and SUVs.

Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, and power products such as generators and farm machinery. The Company also operates a financial credit business. Honda Motor has manufacturing facilities in the US, Canada, the UK, France, Italy, Spain, Brazil, Mexico, India, and Thailand.

Hyundai Motor Company manufactures, sells, and exports passenger cars, trucks, and commercial vehicles. The Company also sells various auto parts and operates auto repair service centers throughout South Korea. Hyundai Motor provides financial services through its subsidiaries.

Kia Corporation manufactures, sells, and exports passenger cars, mini-buses, trucks and commercial vehicles. The Company also manufactures auto-parts and tools using hybrid electric and fuel cell technology. Kia markets its products worldwide.

Suzuki Motor Corporation manufactures automobiles, motorcycles, and their related parts. The Company has production facilities in USA, Japan, Taiwan, India, Pakistan, Indonesia, Thailand, and Hungary.

Subaru Corp manufactures passenger cars, buses, motor vehicle parts, and industrial machinery.  The Company also produces aircraft parts and supplies it to defense agency and Boeing Co.  The Company sells its passenger cars under the Subaru brand name.

Yamaha Motor Co., Ltd. manufactures motorcycles.  The Company also produces motor vehicle engines for Toyota Motor Corp. and Ford Motor Co.  Yamaha Motor's specialty products include motor boats, snowmobiles, golf carts, and electric power generators.  Yamaha Motor sells products in Japan, North America, Europe, Asia, and South America.

Bajaj Auto Limited manufactures and distributes motorized two-wheeled and three-wheeled scooters, motorcycles and mopeds.

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Bajaj Auto Ltd (BJAUT IN)

Autos - Margin Pressure to Be Lower than Earlier Envisaged

We refrain from comparing YoY numbers, given the low base of last year and, hence, compare numbers on a QoQ basis for all companies.

HDFC Securities

Auto/Auto-Ancillary Sector - Spillover of RM Inflation to Impact Margins

We expect 1QFY23 earnings of Auto & Auto Ancillary companies in our coverage universe to grow significantly over a lower base of 1QFY22.

Nirmal Bang

Autos - Two Wheelers: Some Green-Shoots Visible

We interacted with 22 two-wheeler (2W) dealers’ pan-India to get a sense of demand trends in June. One common feedback we got is that 2W demand is...

HDFC Securities

Bajaj Auto - Domestic 2W Recovery on Track

In an interaction with Emkay, new CFO Mr. Dinesh Thapar reiterated expectations of a strong recovery in domestic 2Ws and an aggressive focus on EVs

Emkay

Bajaj Auto - Exports Growing on Strong Footing; Focus Shifting to EVs

Results beat expectations; gross margin ahead of our estimate: Reported revenue at Rs79.7bn was ahead of broader expectations. Initial...

Nirmal Bang

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