Hero Motocorp (HMCL) could surprise positively on the volume front. On the other hand, with exports and threewheelers growing at 25%+, margin surprise is likely at Bajaj Auto. We maintain our Accumulate call on both the stocks and continue our preference for HMCL over BJA, says Prabhudas Lilladher.
Led by new launches from Honda (New Activa), Hero (Maestro), and TVS (Jupiter), the scooter segment grew at a faster clip of 30.4% YoY for Aug'14 period. The motorcycle segment, too, witnessed a faster pace of growth, growing at 14.4% vs 6.2% last month. The faster volume growth of the scooter segment led to a 236bps YoY improvement in it's market share. The main drivers for the growth are (a) growing acceptability of gearless scooters, particularly by women, (b) rising urbanization and increasing proportion of working women and (c) new launches. We expect 17‐18% CAGR in scooter volumes for the next three years.
On account of lower sales of 'Discover' and 'Platina', BJA's volumes declined by 15.6% YoY in the 75‐110cc segment as against 24.4% YoY growth in the segment during Aug'14 period. This led to 445bps loss in market share to 9.4% for Aug'14 period. On the other hand, HMCL gained 585bps market share in this segment, given the strong demand for HMCL's 'HF Deluxe' and 'Splendor'. In the 125‐150cc category, BJA reported a 19.7% YoY growth on a low base, thereby leading to a 489bps increase in market share in Aug'14 month However, for Apr‐Aug'14 period, BJA lost ~230bps in market share, while HMCL gained ~270bps in market share led by 'Xtreme' and 'Impulse'.
Maintain Accumulate: Given the strong product portfolio and the initial success of Splendor 'iSmart', we believe Hero Motocorp (HMCL) could surprise positively on the volume front. On the other hand, with exports and threewheelers growing at 25%+, margin surprise is likely at Bajaj Auto . We maintain our Accumulate call on both the stocks and continue our preference for HMCL over BJA.
For all recommendations, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click here
Anda sedang membaca artikel tentang
Accumulate Hero Motocorp, Bajaj Auto: Prabhudas Lilladher
Dengan url
http://harmonisem.blogspot.com/2014/09/accumulate-hero-motocorp-bajaj-auto.html?m=0
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Accumulate Hero Motocorp, Bajaj Auto: Prabhudas Lilladher
namun jangan lupa untuk meletakkan link
Accumulate Hero Motocorp, Bajaj Auto: Prabhudas Lilladher
sebagai sumbernya
0 komentar:
Posting Komentar