Automobiles Q3 Results Preview: Commercial Vehicles Could Outperform: HDFC Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .HDFC Securities Institutional Equities.In Q3, while two-wheeler demand failed to pick up even in the festive season, passenger vehicle, tractor and commercial vehicle demand remained healthy. Supply chain constraints for major original equipment manufacturers seem to have eased QoQ. Export demand continues to be weak, given the geopolitical tensions. Overall, we expect auto, auto ancillaries and tyre companies to see the benefit of softening input costs from Q3 onwards. Benefits from currency depreciation would become visible for the export-oriented companies. However, the extent of margin expansion in Q3 would largely depend on volume growth QoQ as well as discounting trends in Q3. We expect CV players to outperform two-wheeler and PV players in terms of QoQ earnings growth in Q3. .Click on the attachment to read the full report:.More Research Reports On Automobiles Sector Q3 FY23 Earnings Preview.Benign Commodity Costs To Aid In YoY Margin Expansion: Systematix Demand Largely Stable Post Festive Season, Supplies Improving: Motilal OswalPost-Festive Demand Scenario Weak For Two-Wheelers, PVs: Prabhudas Lilladher.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Automobiles Q3 Results Preview: Commercial Vehicles Could Outperform: HDFC Securities

Auto sector has underperformed the Nifty Index in Q3 due to concerns over rising inflationary pressures hurting demand momentum.

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