Shares of automobiles companies are trading firm in morning deals on the bourses after reporting a slightly better-than-expected sales numbers for the month of September 2013 and expectations of better monsoons may revive growth during the festival season.
Bajaj Auto, Hero MotoCorp, Mahindra and Mahindra (M&M), Maruti Suzuki India and Tata Motors are up 1-3% on the Bombay Stock Exchange (BSE). The BSE auto index was up 2% as compared to 1.2% rise in benchmark index at 1035 hours.
Among the individual stocks, Bajaj Auto has rallied 3% at Rs 2,078 on posting 2.1% year-on-year (yoy) growth in total sales at 367,815 units driven by 10.2% yoy growth in exports during September.
On a month-on-month (mom) basis, total sales grew by 17.8% led by the inventory build-up ahead of the festival season in anticipation of the strong demand. The growth was driven by 16.3% and 30.7% mom growth in the motorcycle and three-wheeler sales respectively.
M&M too, is trading higher by 3% at Rs 856 after registered slightly better-than-expected sales growth of 2.2% yoy to 69,926 units led by the strong momentum in the tractor segment even though the automotive segment continues to witness headwinds due to increasing competition in the utility vehicle space.
The tractor segment witnessed a strong growth of 32.6% yoy led by the strong domestic demand driven by good monsoons.
Bajaj Auto, Hero MotoCorp, Mahindra and Mahindra (M&M), Maruti Suzuki India and Tata Motors are up 1-3% on the Bombay Stock Exchange (BSE). The BSE auto index was up 2% as compared to 1.2% rise in benchmark index at 1035 hours.
Among the individual stocks, Bajaj Auto has rallied 3% at Rs 2,078 on posting 2.1% year-on-year (yoy) growth in total sales at 367,815 units driven by 10.2% yoy growth in exports during September.
On a month-on-month (mom) basis, total sales grew by 17.8% led by the inventory build-up ahead of the festival season in anticipation of the strong demand. The growth was driven by 16.3% and 30.7% mom growth in the motorcycle and three-wheeler sales respectively.
M&M too, is trading higher by 3% at Rs 856 after registered slightly better-than-expected sales growth of 2.2% yoy to 69,926 units led by the strong momentum in the tractor segment even though the automotive segment continues to witness headwinds due to increasing competition in the utility vehicle space.
The tractor segment witnessed a strong growth of 32.6% yoy led by the strong domestic demand driven by good monsoons.
On a mom basis, total sales surged 34.3% as automotive and tractor sales registered a growth of 14.2% and 88.1% respectively.
