Maruti Suzuki, Tata Motors, Hero MotoCorp shares gain on March sales data, price hikes

Shares of Maruti Suzuki, Tata Motors and other auto stocks gained in Monday's trade after price increase and March sales data.

Maruti Suzuki, which earlier announced price increases from April 1, said its estimated weighted average of price increase across models stands at around 0.8 per cent and is calculated using Ex-showroom prices of models in Delhi. This is effective from 01st April 2023.

The carmaker said it sold a total of 1,70,071 units in March, which included domestic sales of 136,787 units, sales to other OEM of 3,165 units and its highest ever monthly exports of 30,119 units. Following the announcement, the stock rose 2.01 per cent to hit a high of Rs 8,460 on BSE.

Hero MotoCorp rose 2.35 per cent to Rs 2402.40. The two-wheeler (2W) maker sold 519,342 units in March, up 15 per cent over 4,50,154 two-wheelers it sold in March last year. The two0wheeler major has also increases prices of select two-wheeler models in its portfolio from April 1.

Ashok Leyland reported 23 per cent YoY jump in March domestic sales at 22,885 units against 18,556 units YoY. Total sales, including exports, stood at 23,926 units, up 19 per cent. This stock advanced 2.08 per cent to Rs 142.05

"Domestic dispatches of 2Ws continue to improve but broad based recovery is yet to happen. Exports of 2Ws improved MoM. MHCV dispatches were above estimate led by strong demand from underlying industries and heavy pre-buying before BS6-II transition. PV dispatches were largely flat YoY indicating moderation in demand momentum. Despite weak agri sentiments due to erratic rainfall in key regions, tractors reported YoY growth," Motilal Oswal said.

Tata Motors shares rose 0.33 per cent to Rs 422 after the Tata group firm said its domestic sales for March rose 3 per cent to 89,351 units from 86,718 units in the year-ago month.

Girish Wagh, Executive Director at Tata Motors said Tata Motors' commercial vehicle domestic sales in the March quarter at 1,12,145 units was 22 per cent higher than September quarter and 2 per cent higher than the year-ago quarter.

However, the demand for small and light commercial vehicles continued to be impacted due to high interest rates and high base effect, it said.

Motilal Oswal said overall dispatches were better than expected for two-wheelers and commerci vehicles while the numbers were in line for personal; vehicles and tractors. Volume growth for March indicated healthy demand during the festive season followed by higher dispatches before BS6-II transition.

"We prefer CVs over other segments thanks to strong demand and a stable competitive environment. We prefer companies with: higher visibility in terms of demand recovery, a strong competitive positioning, encouraging margin drivers, and 4) a strong balance sheet," said Motilal Oswal Securities. The brokerage has Ashok Leyland and Tata Motors as its preferred OEM picks.

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