Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
20 October, 2014 09:55 IST
News
Bajaj Auto to outperform Hero Motocorp in near to mid-term: PL
Source: IRIS | 16 Nov, 2012, 04.24PM
Comments  |  Post Comment

Led by new launches from Honda (Dio), Hero (Maestro), TVS (Pep+) and Suzuki (Swish), the scooter segment grew at a faster clip of 32.4%YoY in the month of Oct'12 as against the 6.7% YoY growth in the motorcycle segment. For April-Oct’12, the scooter segment registered a growth of 22.3%, with an estimated growth of 16.7% for FY13E.

The faster volume growth of the scooter segment lead to a 300 bps improvement in its share to 21.0% of the two-wheeler market for YTD FY13E.

For the month of Oct'12, motorcycle segment grew by 6.7% YoY despite flattish volumes by Hero Motocorp (HMCL). This was mainly on account of 69.4% YoY growth registered by HMSI. For April-Oct'12, the segment reported flattish numbers, with an estimated growth of 4.0% for FY13E led by the new launches.

Commenting on the sector, stock broker Prabhudas Lilladher said, ''We believe Bajaj Auto is likely to outperform Hero Motocorp (HMCL) in the near-to-medium term. With exports, three-wheeler and spares accounting for around 50% of its FY14E turnover, we believe Bajaj Auto's margins are set to improve. With earnings CAGR of 9.0% as against 6.5% for HMCL for FY12- FY14E period, we believe the valuations at 14.5x FY14E EPS for Bajaj Auto seems attractive as against similar valuation for HMCL. Maintain 'Accumulate' on Bajaj Auto and 'Reduce' on HMCL."

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.


News
CRISIL consolidated quarterly net declines 39.12% - 17-Oct-2014 20:02
Ind-Ra upgrades Gallantt Ispat to 'BB+' - 17-Oct-2014 19:07
Ind-Ra affirms Hathway Cable at 'A-' - 17-Oct-2014 19:02
Ambuja launches AMBUJA Plus in Maharashtra - 17-Oct-2014 18:58
Brigade Group to invest Rs 5 bn in GIFT city - 17-Oct-2014 17:36
FIIs raise stake in ICICI Bank; DIIs cut exposure - 17-Oct-2014 16:55
FIIs cut shareholding in Coal India; DIIs raise exposure - 17-Oct-2014 16:41
FIIs, DIIs hike stake in Infosys - 17-Oct-2014 16:30
Envair Electrodyne swings to profit in Jul-Sep quarter - 17-Oct-2014 16:26
Axis Bank Q2 in-line; profit climbs 18.2% - 17-Oct-2014 16:25
R S Software (India) consolidated quarterly net jumps 43.28% - 17-Oct-2014 16:19
more...
* Q - Quote , N - News , C - Chart , F - Financials
Comments Post comment 
 Post Comment
Name Email
Comment
Security Code type   kkqgzf into this box
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Forums  |   E-mail  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer