What about ? What sort of administration commentary are you anticipating?
A number of exercise has taken place in Titan throughout January-February with lots of marriages taking place. Overall, we predict good gross sales progress based mostly on demand momentum and the smooth base of the earlier 12 months. Further correction in gold costs through the quarter additionally helped push gross sales through the quarter. Jewellery demand momentum continued in This fall based mostly on the marriage season demand.
What wants to be watched is the commentary from the administration on the way in which ahead with the restrictions and variety of Covid instances on the rise. In the opposite segments such because the watch phase, for the quarter, we predict net gross sales progress of virtually 60% on a YoY foundation, once more due to the low base of final 12 months. We predict the net revenue of about Rs 580 crore which might be a progress of 70% on a YoY foundation.
How have you ever regarded on the auto shares and what have you ever product of the earnings of TVS Motors in addition to Maruti. Also what are you pencilling in for ?
The total auto house in This fall to this point has seen robust demand plus the value hikes that these firms had taken earlier are serving to them report robust numbers. We had been positively stunned by the TVS numbers in addition to the robust outlook that the corporate has given. For TVS Motors, we now have upgraded our numbers by about 14-15% for the present 12 months and subsequent 12 months, primarily to replicate the hike within the costs and the price administration that the corporate has taken. If you have a look at the estimates for Bajaj Auto, it’s once more an identical story the place we predict a powerful progress each by way of volumes in addition to net revenue progress.
The greater concern for the auto sector is that the lockdowns in Q1 and the sharp rise within the uncooked materials prices could possibly be a dampener within the close to time period. Putting that apart, the market is trying positively at a few of these names as a result of the shares had underperformed within the current previous. Given the considerations and rising Covid instances, the outcomes are giving optimistic help to the general views for the auto house as of now.
Coming to the auto sector, is that this the time to wager on CVs or ought to one stick with the farm tools theme?
Within the auto house, the popular phase can be the farm sector. The monsoon predictions have come in and it appears we’d have the third consecutive 12 months of excellent monsoon. While lots of exercise inside the city house has been restricted, the agricultural farm sector comes beneath the important providers and would proceed unabated. That must also assist.
Although a few of these shares have been doing effectively constantly, on the opposite facet the industrial autos (CV) cycle was the worst impacted final 12 months. We have seen a few of the shares not performing as per expectations. So if one had been to have a look at a one-year perspective, the popular house can be the farm sector, that’s the tractor phase.
If you need to play the long run cycle restoration, the CVs would slot in effectively because the cycle might enhance over the following two, three years and shares like an Ashok Leyland or for that matter Tata Motors for the home CV enterprise have seen enchancment. But that ought to maintain over the following two, three years.
Passenger autos and two-wheelers are extra secular in contrast to the opposite segments that are extra cyclical and because of the pandemic comes, we might see some enchancment in two-wheelers particularly because the expectation from two-wheelers have gone up drastically. That is why there may be lots of buzz round two-wheeler names like Bajaj Auto and
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