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MOSL: AUTOMOBILES | June 2018 volumes: 1. Maruti Suzuki, 2. Mahindra & Mahindra, 3. Tata Motors, 4. Eicher Motors

AUTOMOBILES | June 2018 volumes: 1. Maruti Suzuki, 2. Mahindra & Mahindra, 3. Tata Motors, 4. Eicher Motors

 

1. Maruti Suzuki

Domestic dispatches in-line at 135.6k units, +45.5% YoY; Exports below estimate at 9.3k (est 12k)

• MSIL's June-18 wholesales came marginally below estimate at 144.9k units (+36.3% YoY, -16% MoM).
• Domestic volumes came in-line at 135.6k units (est 139.6k units) grew 45.5% YoY (-16.9% MoM). All segments witnessed growth except mid-size segment.
• Ciaz sales declined 60% YoY to 1.6k units (est. of 3.4k units).
• Export volumes declined 29% YoY (flat MoM) and were lower than estimate at 9.3k units (est 12k units).
• The stock trades at 25.5x/20.1x FY19E/20E earnings. Maintain Buy.

2. Mahindra & Mahindra

Automotive wholesales in-line at 45.2k units; UV volumes up 22.7% YoY, 3W volume up 69% YoY

• MM's automotive volumes grew 26.4% YoY to 45.2k units (in-line) in June-18.
• UV sales (incl. pick-ups) grew 22.7% YoY to 38.7k units (in-line).
• Momentum in pick-ups continued with 26.5% YoY growth, while passenger utility vehicles growth was at 6.6% YoY at 16.4k units.
• LCV (>3.5t) and M&HCV sales grew 11% YoY and 58% YoY, respectively.
• 3W volumes increased 69% YoY to 4.3k units (est. of 4.2k units).
• Speaking on the monthly performance, Rajan Wadhera, President, Automotive Sector, M&M Ltd. said, "We are happy to have garnered an overall growth of 26% for June. This growth is driven by both our commercial and personal vehicles portfolio. We hope that macro conditions such as fuel prices, interest rates and raw material prices remain at satisfactory levels to enable us and the auto industry to grow in the coming months".
• The stock trades at 20.8x/18.7x FY19E/20E. Maintain Buy.