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Three Charts on One of the Quickest Bull Markets in History podcast

Jul 3, 2020

How to come out stronger on the other side of this quick bull market.

How to solve the auto puzzle?

Dec 23, 2010

In this article, Equitymaster attempts to help investors to understand the automobile sales trend from a long term perspective

The greatest rivalry in the Indian auto space?

Jun 25, 2010

In this article, Equitymaster discusses the one of the greatest rivalries in the Indian auto space - Bajaj auto versus Hero Honda.

Hero Honda: The dividend Maharaja

Mar 5, 2009

Hero Honda dividend record, Hero Honda dividend growth, hero honda EPS

Outlook on the Indian auto sector

Jan 10, 2008

Whichever way you look at it, rising disposable income, lowering age of first time car users, shorter replacement cycles or above all, lower car penetration, one thing cannot be denied and it is the fact that the Indian passenger car industry will continue to grow at a robust rate in the long term.

Auto: What happened in March?

Apr 12, 2007

What started off with a gallop has sadly ended with a whimper. We are referring to the auto numbers for the key segments in the month of March. As evident from the table below, most of the major companies across key segments have grown their volumes at a lower rate than what was achieved in the entire fiscal. Let us have a look at the performance of each company and the likely reasons behind the same.

Identifying an auto stock: Dos and Don'ts

Apr 9, 2007

In Views on News, Equitymaster has tried to highlight here some factors one should keep in mind before investing in an Auto company. Know more.

Auto: Rough terrain ahead

Dec 28, 2006

We have been maintaining for the past couple of years that auto stocks no longer seem to be 'value buys'. And just as we were proven right at the end of 2005, the underperformance of the auto sector vis-à-vis the Sensex in 2006 has once again made us feel vindicated. '

Auto: Getting tough out there!

Nov 10, 2006

It is said that when the economy does well, the auto industry also performs strongly. While the growth in the industry does not necessarily translate into a gain in the stock markets, nothing could be further from the truth if one looks at a performance of the auto companies on the Indian bourses. Riding on the back of strong growth in volumes, most of the companies from the sector have given good returns over the last one-year. Let us have a look at the leaders and laggards among the Indian aut

Auto: Things can change...

Mar 14, 2006

Automobile stocks have been key participants in the current 'bull run'. The interest evinced in automobile stocks in general, is justified if one considers the performance over last five years (see table below). However, it should also be borne in mind that this has been at a time when the automobile industry has benefited by an upturn in the economy. Here is our take on what lies ahead for the sector?

TVS Motors: Where do you go?

Apr 18, 2005

TVS Motors is the third largest company in the two-wheeler industry with a market share of 16%. Infact, it is the only Indian company without a foreign collaboration in the two-wheeler industry. When the company opted out of the collaboration with Suzuki in 2002, many believed that TVS was headed towards extinction. But the company proved the doomsayers wrong and came out with a very successful 'TVS Victor'. However, since then growth has slowed. We take a look whether the company will weather t

Hero Honda: A SWOT analysis

Apr 11, 2005

Today if one talks about Indian two-wheeler industry, reference to Hero Honda Motors Limited is by default. It is not only the market leader in the two wheeler segment in India but also is the number one two wheeler company in the world by volumes. The company's name is synonymous with fuel-efficient bikes and longevity. The company has a presence in all bike segments viz. economy (CD 100SS, CD Dawn) executive (Super Splendor, Splendor+) and premium (Karizma, CBZ). Splendor is the most successfu

Auto - Is there 'value'?

Dec 30, 2004

Assuming an investor invested Rs 10,000 each in 10 auto stocks on December 28th 2003, the portfolio would have appreciated by 4% in the last one year. Compare this to the previous year i.e. calendar year 2003 when the same portfolio appreciated by as much as 129% in one year! As we had mentioned in our auto sector outlook at the begining of the year, growth was already factored into the price and is

Two-wheelers: 2QFY05 in retrospect

Nov 10, 2004

2QFY05 turned out to be yet another good quarter for the two-wheeler industry. Riding on the back of a low interest rate regime and robust economic growth, industry volumes registered a strong growth of 13% during the quarter. While financials of the big three of the two-wheeler industry i.e. Hero Honda, Bajaj Auto and TVS Motors are already out and have also been subjected to close scrutiny, let us see how the consolidated figures of these companies.

TVS Motor: The slide continues

Oct 25, 2004

TVS Motor, India’s third largest two-wheeler manufacturer has continued to experience topline pressure and has reported a small 3% YoY drop in topline during 2QFY05. The fall in bottomline however is slightly higher at 8%. The corresponding figures for 1HFY05 stood at 5% and 11% respectively.

Bajaj Auto: Margins hit a roadblock…

Oct 20, 2004

Bajaj Auto, India’s second largest two-wheeler manufacturer has witnessed pressure at the operating level during 2QFY05. As a consequence, despite a robust 15% YoY growth in topline during the quarter, the bottomline has witnessed an 11% fall. Decline in other income and higher tax provisioning have also contributed to the drop in net profits.

Hero Honda: The key is profitability

Oct 14, 2004

Hero Honda, India’s largest two-wheeler manufacturer, has reported robust 2QFY05 results. While the topline has grown at a rate of 39% YoY, the growth in bottomline has been somewhat lower at 24%. Pressure at the operating level and higher tax incidence has led to a lower rate of growth in bottomline. For the first half ended September 2004, the topline and the bottomline growth stood at 35% and 22% respectively.

Two-wheelers: 1HFY05, a rear mirror gaze…

Oct 6, 2004

1HFY05 seems to have turned out to be another good period for the two-wheeler industry with most of the company carving out good numbers on the back of robust economic growth and continuity of low interest regime. Against this backdrop, let’s have a look at the sales performance of the three leading two-wheeler companies and try and analyse what would be the shape of things to come.

Auto: Two-wheelers or four-wheelers?

Sep 29, 2004

With per capita income in the country growing at a fair clip, growth prospects of the Indian auto industry appear to be quite encouraging. Therefore its an opportune time for an investor to stay invested in an auto company for the longer term and benefit by way of attractive returns. But what would be bewildering from his point of view would be the fact that if given a choice, where would he like to put his money: A two-wheeler stock or a four-wheeler stock?

Motorcycles: An oversold story?

Sep 15, 2004

Despite an impressive annual growth rate (compounded) of 14% in the last three years, the prospects of the two-wheeler industry look attractive from a medium to long-term perspective. With a significantly lower penetration as compared to other developing nations and favorable demographics, a growth rate of 12%-14% over a longer-term period cannot be ruled out.

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