Friday, August 12, 2022
HomeFinanceTwo-wheeler stocks ready to roll on pick-up in mobility

Two-wheeler stocks ready to roll on pick-up in mobility




A pick-up in rural demand supported by a fall in input costs is likely to drive strong volume growth for domestic two-wheeler companies in the second half of FY23, analysts believe.



The trend in demand has already been visible in the month gone by, which hinted at a likely thriving environment ahead.





According to industry body SIAM, the wholesale numbers for two-wheelers rose 23% YoY to 1.3 million units in June, while at the retail level, it grew 20.6% from a year ago.


From the pack, scooter sales jumped 70% to 4,20,000 units, while those of motorcycles climbed 9% to 8,40,000 units.


Gaurang Shah, Head Investment Strategist, Geojit Financial Services sats recovery in rural markets to buoy demand for two-wheelers, expect healthy sales momentum in two-wheelers MoM and bullish on TVS Motor, Hero Moto and Eicher Motors.


As per IIFL Securities, the recent correction in metal prices is likely to lift earnings-per-share upgrades for two-wheeler OEM manufacturers such as M&M and Bajaj Auto.


On the bourses, shares of two-wheeler companies have firmly defied overall weakness in the market this year. Shares of Hero Moto, TVS Motor, Eicher Motors, Bajaj Auto have surged between 8% to 32% so far in 2022 as compared to over 9% fall in the frontline Nifty and Sensex indices.


That said, as governments push for automotive electrification, analysts believe Hero MotoCorp and Bajaj Auto are primed to benefit from a transition to electric two-wheelers from internal combustion engine (ICE) two-wheelers.


Vinit Bolinjkar, Head of Research, Ventura Securities, says Hero Moto is the best play on EV two-wheelers. Bajaj Auto’s EV ramp up a positive, he says adding that listed two-wheelers will soon catch up with new entrants.


As regards today, crude oil prices, FII flows and rupee movement will guide the market sentiment. Besides, L&T Tech, JSPL, Oberoi Realty, and Federal Bank will be on the radar ahead of their June quarter results.


mail Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor



RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments

%d bloggers like this: