MOSL: AUTOMOBILES | DEC-17 VOLUMES-1. Bajaj Auto; 2. Hero MotoCorp- 3. Tata Motors- 4. Ashok Leyland- 5. EICHER Motors - 6. Mahindra & Mahindra

​AUTOMOBILES | DEC-17 VOLUMES: 1. Bajaj Auto; 2. Hero MotoCorp; 3. Tata Motors; 4. Ashok Leyland; 5. EICHER Motors; 6. Mahindra & Mahindra

Bajaj Auto: Dec-17 dispatches up 29.7% YoY to 292.5k (below est. of 309k); Domestic volume rises 24.9% YoY; exports grow 35.2% YoY

• BJAUT's Dec-17 sales increased 29.7% YoY to 292.5k units (below est. of 309k units). Domestic volumes increased 24.9% YoY to 149.5k (est. of 160k), while exports rose 35.2% YoY to 143k (est. of 149k). Overall FY18 volumes estimate of 3.92m implies a residual monthly run-rate of 318.5k units.
  
• Overall motorcycle volumes increased 12.5% YoY. Domestic motorcycle dispatches increased by ~6% YoY to 112.9k. Motorcycle exports grew ~20% YoY to 115.8k units.
  
• 3W volumes remained strong, with overall volume growing 187.1% YoY. Domestic 3W volumes continued their positive trajectory, increasing 180% YoY to 36.6k units. 3W exports rose 197% YoY to 27.2k units.
  
• On strong 3W volumes, S Ravikumar mentioned that the current growth rate will sustain at least for the next 4-5 months. Speaking on domestic volumes, he said "We are quite confident that we will deliver the type of numbers in domestic that we alluded to in the past."
  
• The stock trades at 18.3x/15.8x FY19E/20E consol. EPS. Maintain Buy.
  

Hero MotoCorp: At 472.7k (+43.2% YoY), volumes miss est. of 553k

• HMCL's Dec-17 volumes of 472,731 units (+43.2% YoY) were below our estimate of 553,000 units. Our FY18 total volume estimate is 7.38m units, asking for a residual monthly run-rate of ~598k units.
  
• Mr. Pawan Munjal, Managing Director & Chief Executive Officer said "We are now entering the last quarter of this fiscal with a strong focus on the premium segment and scooters and we are confident of sustaining our growth momentum."
  
• The company is introducing three new motorcycles - 125cc Super Splendor, the 110cc Passion PRO and the 110cc Passion XPRO - in a phased manner starting January 2018.
  
• HMCL trades at 19.3/17.5x FY19E/20E EPS. Maintain Neutral.