In today's stock market scenario, Hero MotoCorp and Eicher Motors emerged as top gainers on the Nifty index, driven by robust November sales figures. Bajaj Auto also witnessed positive momentum following strong volume numbers, contributing to the Nifty's record-breaking surge. However, the sales performance in the Commercial Vehicles and Passenger Vehicles segments presented a mixed picture.
Notably, two-wheeler manufacturers, including Hero MotoCorp, Bajaj Auto, and Eicher Motors, observed significant share price gains, with Hero MotoCorp and Eicher Motors marking nearly 2% increases and Bajaj Auto not far behind with approximately 1% gains. On a day when the Nifty soared to new heights with over a 1.5% increase, these companies played a pivotal role among the key Nifty gainers.
November witnessed double-digit growth in domestic wholesales across Original Equipment Manufacturers (OEMs), with TVS and Bajaj reporting volumes up by 50-77% YoY and Eicher Motors (Royal Enfield), Honda, and Hero recording a YoY increase of 14-25%. Jefferies India Pvt Ltd analysts estimated a 31% YoY rise in domestic two-wheeler wholesales in November based on OEM volumes, contributing to a 9% increase year to date in FY24.
While two-wheeler domestic sales exhibited a robust performance, export sales experienced a slight 2% YoY decline and a 5% MoM decrease. Additionally, the share of Electric Vehicles in two-wheelers dropped by 100 basis points MoM to 4.1% in November, as per Jefferies data.
In the Passenger Vehicles (PV) segment, sales demonstrated varied growth patterns. Jefferies analysts estimated a modest 3% YoY rise in PV wholesales in November. Notably, Mahindra & Mahindra displayed strong growth with a 32% YoY increase, while Maruti Suzuki and Hyundai India recorded a more subdued 1-3% YoY growth. Tata Motors reported flat YoY numbers. M&M's share price gained over 2%, while Tata Motors saw marginal gains, and Maruti featured among the losers.
Commercial Vehicle (CV) sales volumes for Tata Motors experienced a 4% YoY decline in November. Despite this, the demand for Medium and Heavy commercial vehicles remained robust, with weaknesses observed in the Light Commercial Vehicles (LCV) segment. Analysts at Antique Stock Broking anticipated an improvement in the LCV segment, suggesting that it might have bottomed out and is expected to recover gradually.
Disclaimer: The views and recommendations provided are individual analysts' perspectives or those of broking companies. It is advisable for investors to seek advice from certified experts before making any investment decisions.
