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Here you will find all the research and views that we post on Equitymaster. Use the tools to customize the results to suit your preference!

















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How does Maruti fare against Hyundai?

Jul 17, 2013

Equitymaster compares the financial performance of Maruti Suzuki with South Korean auto major Hyundai's over the past five years.

Auto stocks: Are high PEs justified?

Sep 29, 2012

This article discusses whether auto companies with high PE deserve such high price multiples.

Tata Motors: A play on India's expanding road network

Jun 17, 2011

A profile of Tata Motors, India's largest manufacturer of commercial vehicles and a leading player in passenger vehicles

Move over BC, AD…

Jan 16, 2008

…as in "Before Christ" and "After Death". Here comes BN, AN - as in "Before-Nano"and "After-Nano". The way this wonder car from the stable of Tata Motors is expected to change the dynamics of the Indian car market necessitates the industry’s performance and strategies to be divided into these two periods - BN and AN.

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: 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: Not just about volumes

May 2, 2006

With the fourth quarter result season beginning on a good note for automobile companies (Maruti), there has been a renewed interest in stocks from the sector. While the effect of good set of volume numbers is likely to be filtered into the fourth quarter numbers, it should be noted that the automobile players should not be judged only by their volume performance. A long-term investor should consider a number of other factors before making an investment in automobile companies. In this article, w

Auto: On a sound footing, but...

Apr 13, 2006

Domestic auto companies have reported robust growth in volumes sales in the past few months. The effect is likely to be filtered into the fourth quarter numbers that are slated to be announced soon. However, at the outset, we would like to inform investors that automobile sales are seasonal in nature. With this reasoning, here are the key things that investors should keep in mind. For the purpose of this article, we have considered the financial numbers of seven companies that form a part of th

Auto: Why to invest in the sector?

Apr 4, 2006

During the last year, automobile stocks have been key participants in the bull run. In fact, the automobile universe of QIS has outperformed the broader indices. Given the broader outperformance, an investor should have compelling reasons to invest in automobile stocks. In this article, we shall look at the macro factors that justify an investment in the automobile industry from a long-term perspective. By long term, we mean a time horizon of at least three years.

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?

Auto: Unfurling the excise cut!

Feb 28, 2006

In the Budget 2006-07, the Finance Minister announced a reduction in excise duty on manufacturing of compact cars (engine capacity upto 1,200 cc (for petrol cars), 1,500 cc (for diesel cars) and measuring upto 4,000 mm in length). In this article, we shall try to understand whether such a reduction in excise is actually beneficial to the auto company and if yes, to what extent.

Auto: It's not just about volumes...

Jan 10, 2006

With the results season having already kicked in, soon to be followed by the results from auto majors, let us look at a few important points to be kept in mind while analysing the results of auto companies. At the outset, we would like to inform investors that automobile sales are seasonal in nature. With this pretext, here are the key things that an investor should keep in mind. For the purpose of this article, we have considered the financial numbers of the companies in Quantum Universe (7 com

Auto: A long-term play!

Dec 27, 2005

Last year, we had said that auto stocks are no more a ‘value buy’. Stock prices and valuations will be influenced by performance, which is increasingly becoming competitive. In this context, the risk profile is on the higher side. At the end of 2005, the actual performance of the automobile industry reflects our statements. If one had invested Rs 100 in the entire basket of auto stocks (represented by the auto index) at the end of 2004, one would have marginally outperformed the Sensex (see adja

Auto Volumes: Back on track!

Sep 27, 2005

The month of August’05 had been good for the automobile industry, which registered all-round growth in the domestic market. It should be noted that during the first four months of the current fiscal, though industry witnessed a 10% YoY volume growth, the performance of various segments had been mixed. While two-wheeler continued to grow at steady rate, passenger cars registered a mere 3% YoY increase. In this article, we shall see how the market leaders have performed in the month of August’05.

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

Auto: Identifying men from the boys…

Nov 24, 2004

Followers of the global auto industry need little introduction about Nissan, the Japanese auto major that is revered in the autobahns of the world for the amazing turnaround story that it has scripted for itself. Much of it could be attributed to its great focus on costs and subsequently its operating margins, believed to be among the best in the world.

Auto: Who’s cashing in?

Nov 19, 2004

With product lifecycles shrinking and an extremely demanding consumer to cater to, auto majors all across the world are facing great strain on their financial resources. On the one hand, while aggressive price wars has meant that growth in topline will be hard to come by, the race to bring out contemporary models on the other hand, is forcing companies to pump more cash back into operations. But where is this cash going to come from?

Four-wheelers: 2QFY05, the segmental story

Nov 17, 2004

While almost all the four-wheeler companies experienced inflationary pressures on their bottomlines during 2QFY05, volume sales continued to experience buoyancy. In this article, let us see how the different segments of the industry performed on the volumes front during 2QFY05 for the companies under our universe.

Tata Motors: The two-diamond glitter

Oct 29, 2004

Tata Motors, India’s largest CV (commercial vehicle) manufacturer, has announced impressive 2QFY05 numbers. Riding on the back of a strong 31% YoY growth in topline, the bottomline has grown at a higher rate of 50%, thanks mainly to a more than three-fold jump in other income and lower tax provisioning. Operating margins however, have come under pressure. For the half yearly period, the growth in topline and bottomline stood at 36% and 74% YoY respectively.


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