The volume growth can be attributed to several factors.
Maruti’s parent Suzuki Motor corporation has deferred its $550-million third plant in Gujarat while Honda Motorcycle and Scooter India has pushed back plans to commence production from its third manufacturing line in Gujarat. Suzuki Motorcycle India has also put off by a few years its proposal to set up a second plant.
The wholesales domestic volume of Royal Enfield fell 3.6 per cent to 67,538 units in October.
Tractor industry growth is expected to recover in the second half due to favourable monsoon and release of subsidy by some state governments to purchase tractors.
Maruti’s 25% drop in volumes in the 1st half ended Sept has pulled Suzuki’s global sales down by 17%.
Co needs to maintain show for a few quarters to build a case for sustainable re-rating.
Even as earnings beat estimates, upside for the stock will depend on its core vertical.
The weight of private banks in the portfolios of domestic mutual funds has gone up to a record high of 20.8 per cent in September, 2019, according to Motilal Oswal Securities. HDFC Bank & ICICI Bank dominate the pack for 14 of the 20 top MFs.
Baleno’s monthly sales slip to 12,000 units a month after Toyota Glanza launch.
The Street expects incremental volumes will start reflecting in the financials from FY21.
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