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MOSL: AUTOMOBILES | FEB-18 VOLUMES-1. Maruti Suzuki; 2. Tata Motors; 3. Bajaj Auto; 4. Mahindra & Mahindra

Automobiles | Feb-18 VOLUMES: 1. Maruti Suzuki; 2. Tata Motors; 3. Bajaj Auto; 4. Mahindra & Mahindra; 5. EICHER Motors; 6. Hero MotoCorp; 7. Ashok Leyland; 8. TVS Motor

 

Maruti Suzuki: Dispatches up 15% YoY to 149.8k units (in-line); Domestic sales grew by 14.2% YoY and exports by 24.9% YoY

• MSIL’s Feb-18 wholesales came in line at 149.8k units (+15% YoY, -1% MoM). YTDFY18 growth was at 13.2%, with a residual monthly run-rate of 164.7k units.
• Domestic volumes grew 14.2% YoY to 137.9k (est. of 143.8k), led by continued growth in the compact (+31.5% YoY) and UV (+13.8% YoY) segments.
• Growth in the compact segment was led by new Swift, Baleno and new Dzire, while that in UVs was led by Brezza and new S-cross.
• Ciaz sales declined 16.8% YoY to 4.9k units (est. of 5.1k units).
• Export volumes were better than estimate at 11.9k units (+24.9% YoY, +10.9% MoM).
• The stock trades at 24x/18.8x FY19E/20E earnings. Maintain Buy.

Tata Motors: Wholesales of 63.8k units in line with estimate of 64.3k; CV sales grew 30.7% YoY to 45.9k units (in-line)

• Tata Motors’ Feb-18 sales grew 34% YoY to 63.8k units (in line with est. of 64.3k units).
• PV sales increased 43.3% YoY, as car segment volumes grew 16.8% YoY and UV segment volumes rose 153% YoY due to healthy demand of Nexon.
• Total CV volumes increased 30.7% YoY to 45.9k units (in-line), led by an increase in both LCV and HCV sales by 39.5% and 22.1%, respectively.
• The stock trades at 6.4x/6.3x FY19E/20E consol. EPS. Maintain Buy.