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MOSL: AUTOMOBILES | MAY-18 VOLUMES-1. MARUTI SUZUKI; 2. MAHINDRA & MAHINDRA; 3. TATA MOTORS; 4. BAJAJ AUTO; 5. EICHER MOTORS; 6. HERO MOTOCORP

Automobiles | May-18 VOLUMES: 1. Maruti Suzuki; 2. Mahindra & Mahindra; 3. Tata Motors; 4. Bajaj Auto; 5. Eicher Motors; 6. Hero MotoCorp; 7. Ashok Leyland; 8. TVS Motor; 9. Escorts

 

Maruti Suzuki: Dispatches of 172.5k units exceed estimate of 165.5k units; Domestic sales grew 24.9% YoY, while exports rose 48.1% YoY

• MSIL’s May-18 wholesales came in above our estimate at 172.5k units (+26% YoY, -0.3% MoM).
• Domestic volumes grew 24.9% YoY to 163.2k (est. of 156.5k), led by growth in the UV (+13.4% YoY) and compact (+50.8% 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 14.8% YoY to 4k units (est. of 4.7k units).
• Export volumes were better than estimate at 9.3k units (+48.1% YoY, +16.3% MoM).
• The stock trades at 25.1x/19.8x FY19E/20E earnings. Maintain Buy.

Mahindra & Mahindra: Wholesales in-line at 76.2k units; UV volumes up 10.4% YoY, Tractor volumes up 13.9% YoY

• MM’s volumes grew 12.6% YoY to 76.2k units (in-line) in May-18.
• Tractors sales increased 13.9% YoY to 29.3k units (est. of 31.5k), led by a rise of 14% in domestic volumes and 9% YoY in export volumes.
• UV sales (incl. pick-ups) grew 10.1% YoY to 40.5k units (in-line).
• Momentum in pick-ups continued with 11% YoY growth, while passenger utility vehicles growth was flat YoY at 19.3k units.
• LCV (>3.5t) and M&HCV sales declined 17% YoY and 163% YoY, respectively.
• 3W volumes increased 7% YoY to 4.4k units (est. of 4.5k units).
• Speaking on the monthly performance, Rajan Wadhera, President, Automotive Sector, M&M Ltd. said, “May has relatively been a subdued month compared to April. At Mahindra, we have by and large maintained our growth momentum during the month of May 2018, especially in commercial vehicles. On the back of a buoyant economy, our MHCV division continues to outperform. Exports have also been strong with high growth. With the forecast of an upcoming normal monsoon, we are confident of good growth in the coming months”.