Automobiles & Auto Components share price target

Retail sales in the automobile industry rose by 14.1% YoY in July 2024, reaching 20.3 lakh units. Two-wheeler retail sales increased by 17.2% YoY to around 14.4 lakh units, while car sales grew by 10.4% YoY to 3.2 lakh units.

In July, automobile wholesales of listed companies grew marginally by 0.2% YoY to 12.2 lakh units. Exports increased by 5.2% YoY to 2.6 lakh units. Domestic two-wheeler wholesales of listed companies increased by 2.1% YoY to 8.3 lakh units, while passenger vehicles fell by 5.1% YoY to 2.2 lakh units.

For Q1FY25E, we expect our OEM coverage companies to report an 8.5% YoY revenue gain, led
by a YoY volume uptick for 2-wheeler and 3-wheeler segments, increasing export volumes, and
a YoY increase in average realizations across all coverage companies. However, on a QoQ
basis, we expect revenue to decline by 8.4%.

Q1FY25 Earnings Play: Auto OEMs: TVS Motors, Hero Motocorp, (and M&M non coverage) Auto Ancillary: Sansera Engineering Ltd.

Retail sales in the automobile industry rose by 0.7% YoY in June 2024, reaching 18.9 lakh units. Two-wheeler retail sales increased by 4.7% YoY to around 13.8 lakh units, while car sales declined by 6.7% YoY to 2.8 lakh units.

Valuation & View

Auto Monthly Volume - June 2024