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MOSL: AUTOMOBILES | APR-18 VOLUMES: 1. Maruti Suzuki, 2. Mahindra & Mahindra, 3. Tata Motors, 4. Eicher Motors

Automobiles | APR-18 VOLUMES: 1. Maruti Suzuki, 2. Mahindra & Mahindra, 3. Tata Motors, 4. Eicher Motors, 5. TVS Motor

 

Dispatches above estimate at 172.9k units (+14.4% YoY); Domestic sales grew 14.2% YoY while exports grew 19.1% YoY

• MSIL’s Apr-18 wholesales came above estimate at 172.9k units (+14.4% YoY, +7.7% MoM).
• Domestic volumes grew 14.2% YoY to 164.9k (est 149.8k), led by continued growth in compact segment (+31.8% YoY), due to healthy demand of new Swift, Baleno and Dzire.
• Ciaz sales declined 27.2% YoY to 5.1k units (est. 4.8k units).
• Export volumes were lower than estimate at 8k units (+19% YoY).
• The stock trades at 25.2x/19.8x FY19E/20E earnings. Maintain Buy

Mahindra & Mahindra: Wholesales of 79k units below estimates of 82.7k units; Auto volume in-line at 48k units, Farm volume below estimate at 30.9k

• MM’s total volumes grew 20.5% YoY to 79k units (est. 82.7k units) in Apr-18.
• Tractors sales grew below estimate by 18.3% YoY to 30.9k units (est. of 35k), led by 18.5% increase in domestic volumes and exports growth of 10.4% YoY.
• UV sales (incl. pick-ups) grew +19.9% YoY at 42.3k units (est 41k units).
• Momentum in pick-ups continued with ~22% YoY growth, while passenger utility vehicles reported growth of ~11% YoY.
• LCV (>3.5t) and M&HCV sales grew by ~34% YoY and ~225% YoY, respectively.
• 3W volumes increased ~26% YoY to 4.3k units (est. of 4.9k units).