| BRICS PCG: Q4 to be good for auto comp |
| Our Markets Bureau / Mumbai April 21, 2006 |
| Brics PCG Research, in its morning call, states that auto component industry is expected to power strongly ahead in Q4 FY06, backed by sustained domestic growth and a substantial acceleration in exports. The after-market sales will pitch in as well with moderate growth levels. Auto component companies with a significant share in the two-wheeler and four-wheeler segments are likely to emerge as star performers this quarter in view of the impressive growth witnessed in both segments. Among stocks under Brics' coverage, they have forecast a good quarter for Bharat Forge, El Forge, Munjal Showa and Sona Koyo. The report expects the industry as a whole to register strong revenue growth of 23.7% YoY in Q4. The pressure on operating profit margins is likely to ease due to buoyant automobile demand as well as stable steel prices. A few auto component manufacturers have also been successful in partially transferring the increased input cost burden to customers. Hence, the sector |
