Maruti Suzuki, Tata Motors, M&M, Hero MotoCorp: Analysts share views on Sept sales data

September auto sales data suggested a strong retail growth in passenger vehicles segment, an in-line sales trend for the two-wheeler segment and a weak show by the tractor segment. Commercial vehicle (CV) segment surprised positively. Net-net analysts said sales data was positive.

September retail sales were much stronger YoY because the Shraddha period, which is considered inauspicious, falls during September 29 and October 14, said Nomura India. This was against September 10-25 in 2022, it added.

Data showed volumes for Maruti Suzuki came in at roughly 1,81,300 units, up 3 per cent. For Tata Motors, it declined 5 per cent YoY to roughly 45,300 units. "Wholesales for Tata Motors declined to enable smooth transition to new generation models like Nexon and Nexon EV. Mahindra & Mahindra UVs (including pickups) grew 15 per cent YoY," said Motilal Oswal Securities. 

In the domestic two-wheeler segment, wholesales of Hero MotoCorp, TVS Motor and Eicher Motors grew 2 per cent, 6 per cent and 1 per cent, respectively. Retails for the three two-wheeler makers were up 31 per cent, 28 per cent and 8 per cent YoY, respectively.

"We continue to prefer two-wheelers, given that the ongoing domestic recovery is starting to accelerate and broaden, with gradual improvement also expected in exports. The worst of the slump now behind. Among OEMs, we reiterate preference for TVS Motor (structurally superior 2W play staking its claim for E-2W leadership as well), Hero MotoCorp (strong premiumisation drive, coupled with reasonable valuations) and Eicher Motors (starting to deliver on growth; to emerge stronger despite the recent competition)," Emkay Global said.

Nomura India said the PV industry recorded its best-ever absolute monthly dispatches but the rate of growth was fairly muted at 2.5 per cent YoY. Retail growth though was much higher, at 14 per cent YoY.

Motilal Oswal said it prefers CVs over other segments led by 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 a strong balance sheet. Tata Motors and Ashok Leyland are our top OEM picks," it said. 

 

 

 

Also read: Stock recommendations by share market analysts for October 3, 2023: Hero MotoCorp, L&T Finance, Dr Reddy's, Exide & Hindustan Oil

Also read: Top 10 stocks to watch on October 3, 2023: Adani Energy, Suven Pharma, Hero MotoCorp, Maruti, MCX, Delta Corp & others

Also read: JSW Infrastructure shares and Vaibhav Jewellers shares listing today in Top News on October 3: Share markets outlook, Valiant Laboratories IPO to close, price hike for Hero MotoCorp bikes, scooters