Motilal Oswal - MOSL: AUTOMOBILES-CVs â€“ reduction in sequential discounts after long time

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Motilal Oswal

Jinesh Gandhi

MOSL: AUTOMOBILES-CVs â€“ reduction in sequential discounts after long time

Automobiles: CVs – reduction in sequential discounts after long time; Overloading ban in key states to continue driving CV wholesales

Our interaction with leading channel partners indicates continued demand momentum across segments. However, retails in the month are impacted by inauspicious days of Holashtak in key markets like Gujarat, Maharashtra, Rajasthan and Uttar Pradesh (UP).
PV retails were healthy, led by MSIL. New Swift bookings surpassed 62k units, with an average waiting period of 10-12 weeks. MSIL is witnessing healthy demand for AMT variants of new Swift, Dzire and Ignis.
CVs are likely to continue witnessing healthy momentum in wholesales, as demand continues to outpace supplies in key markets, partially led by short supply of vehicles. Leading channel partners are indicating 10-15% sequential decline in discounts in CVs.
TVS Apache RR310 and Ntorq 125 have seen healthy bookings and inquiries. As indicated by channel partners, TVS Apache RR310 is facing supply shortage due to gradual production ramp-up.
Royal Enfield demand continues remaining weak in the key markets of Maharashtra and Karnataka. RE is set to launch a variant of Thunderbird on 28th February.
We prefer 4Ws and CVs due to stronger volume growth and a stable competitive environment. Our top picks in autos are MSIL and Motherson Sumi among large caps, and Ashok Leyland and Amara Raja among midcaps.

27/02/2018 4 EN

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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Analysts

Jinesh Gandhi

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MOSL: AUTOMOBILES-CVs â€“ reduction in sequential discounts after long time

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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