India's auto firms to post robust Q4 on vol growth, lower commod costs -analysts

CIE Automotive India

11/04/2023 09:51

** India's Nifty Auto Index  .NIFTYAUTO  rises nearly 1%
with 11 of the 15 constituents logging gains, on hopes of strong
quarterly earnings
    ** ICICI Securities expects robust Q4 reports, with revenue
and EBITDA growth of ~18% and ~30%, respectively, due to vol
growth in four-wheelers and easing raw material costs
    ** Identifies Tata Motors  TAMO.NS , Mahindra & Mahindra
 MAHM.NS , TVS Motor  TVSM.NS  as top picks in OEMs and Mahindra
CIE Automotive  MAHN.NS , Apollo Tyres  APLO.NS  in ancillaries
    ** Nomura expects auto firms to post core profit and revenue
growth of 42% and 20%, respectively
    ** Expects Ashok Leyland  ASOK.NS , Bajaj Auto  BAJA.NS  and
Hero MotoCorp  HROM.NS  to beat estimates
    ** Says auto ancillary firms likely to clock growth due to
lower commodity costs despite subdued tyre replacement demand
    ** Jefferies sees healthy volume growth for passenger
vehicles, two-wheeers and trucks over FY23-25E, with 1-4 ppt
EBITDA margin expansion on better pricing power amid good demand

 (Reporting by Dimpal Gulwani in Bengaluru)
 ((Dimpal.Gulwani@thomsonreuters.com;))