Printed On Apr 01, 2021 03:19:00 PM
Whereas total gross sales had been down, the BSE Auto Index closed 107 p.c greater on March 31, 2021 than on April 1, 2020.
It’s the daybreak of a brand-new monetary 12 months for India. Automotive sales-wise, it has not been a very noteworthy fiscal for many gamers. From passenger automobiles to industrial operators, not one of the segments are fully out of the woods. Nonetheless, when it comes to inventory market efficiency, it’s been a moderately easy trip for the auto shares this monetary 12 months. The BSE Auto Index closed commerce on March 31, 2021 at 22,252.21, up over 107 p.c from April 1, 2020.
- Tata Motors inventory worth elevated over 300 p.c in FY2021
- Maruti Suzuki inventory fell Eight p.c within the final quarter, however gained almost 60 p.c within the fiscal
- Eicher (Royal Enfield), Bajaj, Hero and TVS inventory additionally publish vital positive factors
Within the final quarter of FY2021, passenger automobiles and two-wheeler shares had been among the many high gainers, with almost 62 p.c positive factors in Tata Motors, 12.44 p.c positive factors in Mahindra and Mahindra. Nonetheless, Maruti Suzuki has been an underperformer – down Eight p.c – in the identical interval. Within the two-wheeler house, TVS Motor jumped 18 p.c whereas Bajaj Auto and Eicher Motors have gained 7 p.c within the final quarter of FY2021.
In particular person inventory motion, Tata Motors is actually one of many shining stars on Dalal Avenue, with a whopping 300 p.c plus positive factors on this fiscal. The inventory market efficiency matches the bellwether auto inventory’s retail efficiency too. Its passenger automobiles enterprise has scripted a exceptional turnaround with gross sales hovering to an eight-year excessive.
Mahindra & Mahindra
Mahindra & Mahindra gained almost 180 p.c this monetary 12 months and closed commerce on March 31 at Rs 795.25 per share. It’s 16.48 p.c away from its 52-week excessive of Rs 952.05/share. The new Thar is giving it new market traction and has been adjudged our 2021 Automobile of the 12 months. General, Mahindra & Mahindra is at No. Three place with gross sales of 1,38,887 models within the first 11 months of FY2021 and a utility automobiles market share of 15.38 p.c, down from 19 p.c a 12 months in the past. This fiscal additionally marked the tip of a 27-year lengthy tenure of Dr Pawan Goenka on the helm of M&M.
Maruti Suzuki India
The inventory market underperformance within the final quarter of FY2021 has not dented Maruti Suzuki’s market share. The market chief within the passenger automobiles section has additionally maintained management place within the utility automobiles section, with 2,02,927 models offered between April 2020 and February 2021 and a 22.47 p.c market share. What’s creditable is that regardless of exiting the diesel engine market previously 12 months, the corporate is simply 9.16 p.c behind its year-ago gross sales of two,23,394 models. During the last one 12 months, Maruti Suzuki inventory has yielded almost 60 p.c return, and is 18.34 p.c away from its 52-week excessive of Rs 8,329/share.
Within the two-wheeler house, Royal Enfield is little question making waves with the Meteor 350 bagging our 2021 Bike of the 12 months award. Whereas the Meteor is among the many high 10 promoting bikes in India, the bike maker clocked a 6 p.c progress in February gross sales on a year-on-year foundation and the inventory of the dad or mum firm, Eicher Motors is buzzing on D-street. It’s up nearly 100 p.c on this fiscal and is simply 14.26 p.c away from its 52-week excessive of Rs 3,037/share. Not simply the auto sector however total, it’s been one of many outperforming shares.
TVS Motor Co
The opposite massive buzzer amongst the two-wheelers, TVS Motor has recorded over 130 p.c positive factors in FY2021 backed by sturdy fundamentals and almost 7 p.c compounded annual progress in its web revenue within the final three years. Its two-wheeler exports clocked 1,00,000 models in March 2021. This fiscal additionally marked TVS Motor’s takeover of 123-year outdated British bike model, Norton. Norton is at present finalising the development of its new manufacturing facility in Solihull and is anticipated to open by the second quarter of this calendar 12 months.
Hero MotoCorp continued to keep up its lead because the market chief in bikes and scooters and unfold the cheer within the inventory market. The inventory is up near 83 p.c in what’s been a moderately busy fiscal for the bike maker. It not simply crossed the 100 million cumulative manufacturing milestone, but additionally rejigged its management crew and finalised its partnership with Harley-Davidson previously twelve months. The inventory is 19.71 p.c away from 52-week excessive of Rs 3,629.05/share.
Bajaj Auto too clocked 80 p.c plus positive factors within the inventory market in FY2021. This mid-range momentum inventory is about 15 p.c away from its 52-week excessive of Rs 4,361.40/share whereas the Bajaj Pulsar stays amongst the 5 most promoting bikes in India. Although, the scarcity of semiconductors has affected Bajaj Auto, the corporate has clocked whole gross sales of 19,79,936 two-wheelers within the home market (-18 p.c) and exported 17,56,656 models (-6 p.c) within the first 11 months of this Covid-impacted fiscal.
General, it’s been a buzzing one 12 months for the auto shares on Dalal Avenue. Quite a lot of the worth motion has been on the again of step by step bettering basic triggers. All eyes on how the brand new monetary 12 months, FY2022 pans out. Particularly with the renewed surge in variety of individuals affected by COVID-19 and a few restrictions in choose auto hubs and the persevering with provide chain bottlenecks, it’s absolutely wait and look ahead to now.