EUR 120.00 For Business Accounts Only

MOSL: MOrning India (30/December/19): 1. Automobiles (PVs faring better than other segments); 2. Annual Report Threadbare | CYIENT FY19 (Acquisitions yet to reap meaningful benefits); 3. Gateway Distriparks

MOrning India (30/December/19):  1. Automobiles (PVs faring better than other segments); 2. Annual Report Threadbare | CYIENT FY19 (Acquisitions yet to reap meaningful benefits); 3. Gateway Distriparks

 

Today’s top research idea

Automobiles: PVs faring better than other segments; Ongoing protests around social issues hurt demand

• Our interactions with leading industry channel partners indicate positive demand trends in PVs but weakness in 2Ws, CVs and tractors
• However, compared to Dec'18, wholesales are likely to remain weak across OEMs (except MSIL, BJAUT)
• Sentiment turned negative, partly due to the ongoing protests around social issues in some markets of India
• Wholesale volumes are estimated to decline ~3%/~5%/~7% YoY in 2Ws/PVs/Tractors. In CVs, volumes are expected to decline by ~3% in LCV and higher by ~42% in M&HCVs.
• Inventory correction has led to comfortable inventory below 30 days across segments.
• Trends in the demand environment for PVs are encouraging, particularly in the run up to BS6 transition.

Piping hot news

GST overhaul next on agenda after budget

The Narendra Modi administration and state governments will hold fresh negotiations to overhaul the goods and services tax (GST) after the Union budget is presented on 1 February, said a government official familiar with the development. Finance ministers of central and state governments will discuss restructuring GST slabs and rates as well as ways to handle a revenue shortfall and the GST compensation to states in the year starting 1 April, the official said on condition of anonymity.