The Street expects incremental volumes will start reflecting in the financials from FY21.
About a fifth of the stocks on the BSE 500 are trading below their book values.
Synergies from the JV expected mainly from manufacturing platform; challenges from vendor base and work culture could be daunting.
The average downcycle period for MHCVs in the past five cycles is around three years with average volume drop of 17 per cent during the period.
The stock has risen 10 per cent in the past one month, mainly due to the recent tax cuts.
The jury is out on whether carmakers should cut prices further to lure back buyers.
NBFCs, which in a normal year disburse Rs 25,000 crore to Rs 30,000 crore, used relatively easy CIBIL criteria to lend. Now, their customers are struggling to get alternative sources of funding.
Bajaj Finance, Britannia, HDFC Bank, Bajaj Auto, Kotak Mahindra, Eicher may benefit most.
In the current situation, wholesale volumes have shrunk due to inventory correction at the dealer end.
Analysts don’t expect the bear hug to last long in India, despite the ‘Death Cross.’
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