Auto sector: The market is currently focused on the results. The market is also waiting for the results of the auto sector. How the auto companies can have results and how is valuation, let’s take a look at it. The BSE Auto Index has underperform the Sensex from 600 basis points. The post -festive season’s demand has destroyed expectations. Brokerage House Emkay says that the 2-wheeler segment is possible to impact average selling price and margin on a quarterly basis. At the same time, volumes can remain mixed. During this period, the average selling price of the 2-wheeler segment may increase by 1.5 per cent on a quarterly basis. At the same time, there may be a decline of 50 basis points in the margin.
Emkay The 4-wheeler segment may increase by 20 per cent in the 4-wheeler segment in the third quarter and 13 per cent in Maruti’s volume. The same, improvement in the average selling price of the commercial vehicle segment in the third quarter is possible on a quarterly basis. It is possible to improve the margin of M & M and escorts on a quarterly basis in the third quarter in the tractor segment.
Auto Ansistry: Expect from Q3?
EMKAY says that the outpatness of auto analysis may continue against OEMS in the third quarter. During this period, the income growth of the analysis can be 16 per cent on an annual basis. At the same time, income growth of OEMS can remain at 11.
Budget Expectations: 13% capex growth expected in FY 2026, 4.5% can be the target of fiscal deficit
Tire Sector: Expect from Q3?
Emkay says that the pressure in the tire sector margin may end in the third quarter. Rubber prices are possible to improve the results of tire sector due to stability in prices of rubber and increase in prices.
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