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A utomobile Sector Muted festival demand Monthly Update | November 2012 December 3, 2012 Yaresh
A utomobile Sector Muted festival demand Monthly Update | November 2012 December 3, 2012 Yaresh

Automobile Sector

Muted festival demand

Monthly Update | November 2012

December 3, 2012

Yaresh Kothari

+91 22 39357800 Ext: 6844 yareshb.kothari@angelbroking.com

For November 2012, automakers reported a muted performance despite the festival season on account of weak demand across the product segments. However, utility vehicles (UV) and light commercial vehicles (LCV) continue to defy the slowdown by posting strong growth. The medium and heavy commercial vehicle (MHCV) segment remains the most impacted as weak demand environment persisted during the month. Among auto majors, while Mahindra and Mahindra (MM) maintained its strong growth trajectory and outperformed its peers; Hero MotoCorp (HMCL), Tata Motors (TTMT), Maruti Suzuki (MSIL) and Ashok Leyland (AL) registered a lower-than-expected performance. Going ahead, we expect the demand scenario to remain challenging as slowdown in economic growth coupled with higher interest rates and fuel expenses continue to dampen consumer sentiments.

TTMT reported extremely weak volumes as total sales registered a decline of 13.4% yoy (7.3% mom) primarily due to a sharp fall of 13.8% yoy (8.5% mom) in domestic sales. The weak performance can be attributed to weakness in the passenger car and MHCV segments which posted a sharp decline of 41.8% (16.5% mom) and 39.1% yoy (18.6% mom) respectively. The LCV sales on the other hand, sustained the strong momentum posting a better-than-expected growth of 18.8% yoy (flat mom).

AL posted lower-than-expected sales, with total volumes recording a decline of 6.4% yoy (7.8% mom) led by continued weakness in the MHCV segment. Hence, the CV volumes (ex Dost) registered a steep decline of 36.5% yoy (9.6% mom).

MSIL reported slightly lower-than-expected sales (flat mom) primarily due to a volume decline of 13.2% mom (5.8% yoy) in the Mini segment. The Mini segment sales were down on account of continued weakness in petrol cars. This is despite the strong bookings for the new Alto (around 40,000 bookings since launch). On a yoy basis though, total sales jumped 12.5% driven by strong growth in the compact, super compact, utility vehicles and exports segments.

MM sustained its strong volume performance, posting a better-than-expected growth of 18.2% yoy (down 9.9% mom) in its automotive segment. Tractor sales too witnessed a growth of 16.8% yoy (down 17.3% mom) leading to a strong growth of 17.8% yoy (down 17.3% mom) in total volumes. The automotive segment witnessed a strong performance across the product portfolio (ex MNAL); however, the PV segment was the primary driver as sales grew by a strong 38.1% yoy (down 8.6% mom) driven by the new launches XUV5OO, Quanto and Rexton.

Two-wheelers and three-wheelers: Bajaj Auto (BJAUT) reported in-line volumes (flat yoy and down 9.5% mom) as motorcycle sales continue to remain sluggish. Nonetheless, the performance benefitted from the new launches – Pulsar 200NS and Discover 125ST and gradual revival in exports. HMCL registered sluggish volumes during the month with total sales posting a decline of 6.4% yoy (5.1% mom). TVS Motor (TVSL) posted in-line volumes with total volumes registering a decline of 2.1% yoy (9.6% mom) primarily due to 15.4% yoy (14.8% mom) decline in scooter sales. The three-wheeler sales recorded a better-than-expected growth (86.8% yoy) led by an impressive exports growth of 81.4% yoy.

TTMT volumes declined 13.4% yoy due to continued weakness in the PV and M HCV

TTMT volumes declined 13.4% yoy due to continued weakness in the PV and MHCV sales

Tata Motors

Auto Sector Update | November 2012

TTMT reported extremely weak volumes as total sales registered a decline of 13.4% yoy (7.3% mom) to 66,500 units primarily due to a sharp fall of 13.8% yoy (8.5% mom) in domestic sales.

The weak performance can be attributed to weakness in the passenger car segment which declined 41.8% yoy (16.5% mom) led by 45.3%, 36.3% and 50.4% yoy decline in Nano, Indica and Indigo sales respectively. As a result, passenger vehicle sales declined 34.3% yoy (13.7% mom) in November 2012.

CV sales too posted a decline of 1.4% yoy (4.6% mom) largely on account of 39.1% yoy (18.6% mom) decline in MHCV sales. The MHCV segment continues to be impacted by the slowdown in the industrial activity and due to the lack of freight demand. LCV sales however, continued the strong momentum posting a better-than-expected growth of 18.8% yoy (flat mom).

Exports posted a decline of 4.7% yoy during the month.

Meanwhile, the company announced two block closures (three day each) at its Jamshedpur plant to avoid piling-up of inventory in the MHCV segment and align production in-line with the market demand.

Exhibit 1: Tata Motors – Sales trend

Segment

November

November

% chg

YTD

YTD

% chg

2012

2011

FY2013

FY2012

Total sales

66,500

76,823

(13.4)

548,134

544,301

0.7

MHCV

10,344

16,999

(39.1)

105,693

138,443

(23.7)

LCV

37,716

31,740

18.8

268,071

222,919

20.3

Total CV

48,060

48,739

(1.4)

373,764

361,362

3.4

Utility vehicles

4,548

4,222

7.7

34,964

31,060

12.6

Cars

13,892

23,862

(41.8)

139,406

151,879

(8.2)

Total PV

18,440

28,084

(34.3)

174,370

182,939

(4.7)

Exports (Included above)

4,146

4,349

(4.7)

35,521

39,598

(10.3)

Source: Company, Angel Research

Nov-10

Jul-12

Mar-12

Nov-12

Sep-12

May-12

Jan-12

Jul-11

Mar-11

Nov-11

Sep-11

May-11

Jan-11

May-12 Jan-12 Jul-11 Mar-11 Nov-11 Sep-11 May-11 Jan-11 A uto Sector Update | November 2012 Exhibit

Auto Sector Update | November 2012

Exhibit 2: CV segment – Monthly sales trend

(units)

(units) Volume(LHS) yoy growth (RHS)   (%)

Volume(LHS)

yoy growth (RHS)

 

(%)

70,000

70,000 35.0

35.0

60,000

30.0

25.0

50,000

20.0

40,000

15.0

30,000

10.0

20,000

5.0

0.0

10,000

(5.0)

0

(10.0)

Nov-10

Jan-11

Mar-11

Jul-11

May-11

Sep-11

Nov-11

Jan-12

Mar-12

May-12

Jul-12

Sep-12

Nov-12

Source: Company, Angel Research

 

Exhibit 3: PV segment – Monthly sales trend

 

(units

Volume(LHS)

Volume(LHS)

 

yoy growth (RHS)

 

(%)

40,000

40,000 100.0

100.0

35,000

80.0

30,000

60.0

25,000

40.0

20,000

20.0

15,000

0.0

10,000

(20.0)

5,000

(40.0)

0

(60.0)

Source: Company, Angel Research

Ashok Leyland

Total sales declined 6.4% yoy led by

AL reported lower-than-expected volumes; total volumes registered a decline

steep decline in MHCV sales

of 6.4% yoy (7.8% mom) led by continued weakness in the MHCV segment. As

a result, CV volumes (ex Dost) posted a steep decline of 36.5% yoy (9.6%

mom) during the month.

 

However, Dost sales sustained momentum and registered sales of 2,883 units (down 4.9% mom).

Exhibit 4: Ashok Leyland – Sales trend

 

November

November

% chg

YTD

YTD

% chg

2012

2011

FY2013

FY2012

Total sales

7,370

7,875

(6.4)

72,691

57,273

26.9

CV (ex. Dost)

4,487

7,061

(36.5)

50,862

55,672

(8.6)

Dost

2,883

814

254.2

21,829

1,601

1,263.5

Source: Company, Angel Research

A uto Sector Update | November 2012 Exhibit 5: CV segment – Monthly sales trend

Auto Sector Update | November 2012

Exhibit 5: CV segment – Monthly sales trend (units) Volume (LHS) yoy growth (RHS) (%)
Exhibit 5: CV segment – Monthly sales trend
(units)
Volume (LHS)
yoy growth (RHS)
(%)
14,000
50
40
12,000
30
10,000
20
10
8,000
0
6,000
(10)
(20)
4,000
(30)
2,000
(40)
0
(50)
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Sep-12
Nov-12

Source: Company, Angel Research

Maruti Suzuki

MSIL registered slightly lower than expected growth, led by weakness in the Mini segment

MSIL reported a slightly lower-than-expected growth of 0.1% mom to 103,200 units primarily due to a decline of 13.2% mom (5.8% yoy) in the Mini segment. The Mini segment sales were down on account of continued weakness in petrol cars. This is despite the strong bookings for the new Alto (around 40,000 bookings since launch).

On a yoy basis though, total sales jumped 12.5% driven by strong growth in the compact, super compact, utility vehicles and exports segments.

While Swift, Dzire and Ertiga contributed towards the strong performance of the compact, super compact and utility vehicles segments respectively; exports growth was led by A-Star. The vans segment continued its poor run posting a decline of 10% yoy (1.6% mom).

The management indicated that the sales were led by festive demand and driven by diesel models; petrol models’ demand however continues to remain weak.

A uto Sector Update | November 2012 Exhibit 6: Maruti Suzuki – Sales trend S

Auto Sector Update | November 2012

Exhibit 6: Maruti Suzuki – Sales trend

Segment

November

November

% chg

YTD

YTD

% chg

2012

2011

FY2013

FY2012

Total sales

103,200

91,772

12.5 732,580 681,200

7.5

A: Mini: M800, A-star,

Alto, Wagon R A: Compact: Swift, Estilo, Ritz 23,849

36,679

38,921

(5.8) 263,935 298,830

(11.7)

22,159

7.6 158,925 133,533

19.0

A: Super Compact: Dzire

13,502

10,403

29.8 101,041

60,787

66.2

A: Mid-size: SX4

692

1,433

(51.7)

4,248 11,662

(63.6)

A: Executive: Kizashi

71

162

(56.2)

141

336

(58.0)

Total passenger vehicles

74,793

73,078

2.3 528,290 505,148

4.6

B: UV - Gypsy, Grand Vitara, Ertiga

7,439

180 4,032.8

55,205

4,296 1,185.0

C: Vans: Omni, Eeco

8,650

9,612

(10.0)

76,607

97,973

(21.8)

Total domestic sales

90,882

82,870

9.7 660,102 607,417

8.7

Total exports

12,318

8,902

38.4

72,478

73,783

(1.8)

Source: Company, Angel Research

Exhibit 7: Total volumes - Monthly sales trend (units) Volume(LHS) yoy growth (RHS) (%) 140,000
Exhibit 7: Total volumes - Monthly sales trend
(units)
Volume(LHS)
yoy growth (RHS)
(%)
140,000
100.0
80.0
120,000
60.0
100,000
40.0
80,000
20.0
0.0
60,000
(20.0)
40,000
(40.0)
20,000
(60.0)
0
(80.0)
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Sep-12
Nov-12

MM’s automotive segment continues to witness strong traction backed by the strength of its UV portfolio

Source: Company, Angel Research

Mahindra and Mahindra

MM sustained its strong volume performance, posting a better-than-expected growth of 18.2% yoy (down 9.9% mom) in its automotive segment to 48,143 units. Tractor sales too witnessed a growth of 16.8% yoy (down 17.3% mom) to 20,476 units. As a result, total volumes posted a strong growth of 17.8% yoy (down 17.3% mom) to 68,619 units.

In the automotive segment, MM witnessed a strong performance across the product portfolio (ex MNAL) during the month. However, the PV segment was the primary driver of growth as sales witnessed a strong growth of 38.1% yoy (down 8.6% mom) backed by the new launches XUV5OO, Quanto and Rexton. While the four-wheeler pick-up segment posted a healthy growth of 7.4% yoy (down 13.3% mom), three-wheeler sales too jumped 16.6% yoy (down 1.5% mom) during the month.

A uto Sector Update | November 2012 Exhibit 8: Mahindra & Mahindra – Sales trend

Auto Sector Update | November 2012

Exhibit 8: Mahindra & Mahindra – Sales trend

Segment

November

November

% chg

YTD

YTD

% chg

2012

2011

FY2013

FY2012

Total sales

68,619

58,249

17.8 528,306 472,564

11.8

Passenger vehicles

24,604

17,813

38.1 180,690 137,206

31.7

Four-wheel pick-up (GIO, Maxximo)

14,353

13,362

7.4 113,697

96,973

17.2

Three-wheelers (Champion, Alfa)

6,867

5,889

16.6

44,856

45,370

(1.1)

LCV/MHCV

931

1,095 (15.0)

7,904

8,457

(6.5)

Exports

1,388

2,563 (45.8)

21,700

17,673

22.8

Total automotive sales

48,143

40,722

18.2 368,847 305,679

20.7

Tractor sales – Domestic

19,757

16,175

22.1 151,987 158,204

(3.9)

Tractor sales – Exports

719

1,352 (46.8)

7,472

8,681 (13.9)

Total tractor sales

20,476

17,527

16.8 159,459 166,885

(4.4)

Source: Company, Angel Research

Exhibit 9: UV segment – Monthly sales trend (units) (%) Volume (LHS) yoy growth (RHS)
Exhibit 9: UV segment – Monthly sales trend
(units)
(%)
Volume (LHS)
yoy growth (RHS)
45,000
80.0
40,000
70.0
35,000
60.0
30,000
50.0
25,000
40.0
20,000
30.0
15,000
20.0
10,000
5,000
10.0
0
0.0
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Sep-12
Nov-12

Source: Company, Angel Research; Note: UV+four-wheel pick-up combined from November 2010

Exhibit 10: Tractor segment – Monthly sales trend (units) Volume (LHS) yoy growth (RHS) (%)
Exhibit 10: Tractor segment – Monthly sales trend
(units)
Volume (LHS)
yoy growth (RHS)
(%)
35,000
50.0
40.0
30,000
30.0
25,000
20.0
20,000
10.0
15,000
0.0
10,000
(10.0)
5,000
(20.0)
0
(30.0)
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Sep-12
Nov-12

Source: Company, Angel Research

Bajaj Auto A uto Sector Update | November 2012 BJAUT reported in-line volumes benefitting from

Bajaj Auto

Auto Sector Update | November 2012

BJAUT reported in-line volumes benefitting from new launches and gradual recovery in exports

BJAUT reported in-line volumes of 372,293 units, flat yoy and down 9.5% mom, primarily on account of sluggish sales in the motorcycle segment. Motorcycle sales declined 1.6% yoy (9.5% mom) led by weak demand in the domestic as well as export markets. Of the total motorcycle sales, Discover and Pulsar accounted for ~70% of the volumes and continue to be benefitted from the new launches, Discover 125ST and Pulsar 200NS.

The three-wheeler segment registered a healthy growth of 7.2% yoy (down 9.4% mom) during the month.

Export volumes posted a decline of 4% yoy (1.6% mom) as volumes in Sri Lanka are yet to recover completely.

The management indicated that the retail sales outpaced the wholesale sales in November (sales of ~300,000 units) which resulted in inventory correction at the dealer end.

The company is planning to launch a new 100cc motorcycle in January 2013 and expects the volumes to benefit from the new launch.

Exhibit 11: Bajaj Auto – Sales trend

Segment

November

November

% chg

YTD

YTD

% chg

2012

2011

FY2013

FY2012

Total sales

372,293

374,477

(0.6)

2,911,974

3,026,703

(3.8)

Motorcycles

326,727

331,967

(1.6)

2,599,060

2,673,458

(2.8)

Three-wheelers

45,566

42,510

7.2

312,914

353,245 (11.4)

Exports (included above)

124,115

129,256

(4.0)

1,056,136

1,112,702

(5.1)

Source: Company, Angel Research

Exhibit 12: Motorcycle segment – Monthly sales trend (units) Volume (LHS) % yoy growth (RHS)
Exhibit 12: Motorcycle segment – Monthly sales trend
(units)
Volume (LHS)
% yoy growth (RHS)
(%)
400,000
30.0
25.0
350,000
20.0
300,000
15.0
250,000
10.0
200,000
5.0
0.0
150,000
(5.0)
100,000
(10.0)
50,000
(15.0)
0
(20.0)
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Sep-12
Nov-12

Source: Company, Angel Research

A uto Sector Update | November 2012 Exhibit 13: Three-wheeler segment – Monthly sales trend

Auto Sector Update | November 2012

Exhibit 13: Three-wheeler segment – Monthly sales trend (units) Volume (LHS) % yoy growth (RHS)
Exhibit 13: Three-wheeler segment – Monthly sales trend
(units)
Volume (LHS)
% yoy growth (RHS)
(%)
60,000
50.0
40.0
50,000
30.0
20.0
40,000
10.0
30,000
0.0
(10.0)
20,000
(20.0)
(30.0)
10,000
(40.0)
0
(50.0)
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Sep-12
Nov-12

Source: Company, Angel Research

Hero MotoCorp

HMCL witnessed sluggish growth during the month; volumes declined 6.4% yoy

HMCL registered sluggish volumes during the month with total sales posting a decline of 6.4% yoy (5.1% mom) to 502,305 units.

The company stated that the dispatches were lower on account of the festival holidays. We believe this could also be in order to avoid piling up of inventory at the dealer end amidst slowdown in retail demand.

On the retail front, volumes jumped 7% yoy and registered sales of over 1.1mn units during the festival months of October-November 2012.

Exhibit 14: Hero MotoCorp – Sales trend

 

November

November

% chg

YTD

YTD

% chg

2012

2011

FY2013

FY2012

Total sales

502,305

536,762

(6.4) 4,004,615 4,122,892

(2.9)

Source: Company, Angel Research

Exhibit 15: HMCL – Monthly sales trend (units) Volume(LHS) yoy growth (RHS) (%) 600,000 50.0
Exhibit 15: HMCL – Monthly sales trend
(units)
Volume(LHS)
yoy growth (RHS)
(%)
600,000
50.0
40.0
500,000
30.0
400,000
20.0
300,000
10.0
0.0
200,000
(10.0)
100,000
(20.0)
0
(30.0)
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Sep-12
Nov-12

Source: Company, Angel Research

TVSL posted in-line volumes during the month; Scooter sales posted a sharp decline of 15.4%

TVSL posted in-line volumes during the month; Scooter sales posted a sharp decline of 15.4% yoy

TVS Motor

Auto Sector Update | November 2012

TVSL posted in-line volumes for November with total volumes registering a decline of 2.1% yoy (9.6% mom) to 171,837 units primarily due to 15.4% yoy (14.8% mom) decline in scooter sales. The scooter sales were down despite the festival demand as the segment continues to remain under pressure due to heightened competition.

The motorcycle sales however, posted a growth of 4.6% yoy (down 9.9% mom) driven by the launch of the new 125cc motorcycle, Phoenix.

TVSL registered a better-than-expected growth in three-wheeler sales (86.8% yoy) led by an impressive exports growth of 81.4% yoy (36.3% mom).

The company recorded excellent retail sales during the festival season with domestic sales of 185,000 units, a growth of around 19% yoy.

Exhibit 16: TVS Motor – Sales trend

Segment

November

November

% chg

YTD

YTD

% chg

2012

2011

FY2013

FY2012

Total sales

171,837

175,535

(2.1) 1,367,084 1,499,963

(8.9)

Motorcycles

65,494

62,608

4.6

502,415

592,055

(15.1)

Scooters

37,470

44,301 (15.4)

313,418

366,734

(14.5)

Mopeds

63,819

65,920

(3.2)

521,193

511,299

1.9

Total two-wheelers

166,783

172,829

(3.5) 1,337,026 1,470,088

(9.1)

Exports (included above)

20,080

24,271 (17.3)

159,416

208,701

(23.6)

Three-wheelers

5,054

2,706

86.8

30,058

29,875

0.6

Source: Company, Angel Research

Exhibit 17: Motorcycle segment – Monthly sales trend (units) Volume (LHS) yoy growth (RHS) (%)
Exhibit 17: Motorcycle segment – Monthly sales trend
(units)
Volume (LHS)
yoy growth (RHS)
(%)
100,000
50.0
90,000
40.0
80,000
30.0
70,000
20.0
60,000
10.0
50,000
0.0
40,000
(10.0)
30,000
(20.0)
20,000
10,000
(30.0)
0
(40.0)
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Sep-12
Nov-12

Source: Company, Angel Research

A uto Sector Update | November 2012 Exhibit 18: Scooter segment – Monthly sales trend

Auto Sector Update | November 2012

Exhibit 18: Scooter segment – Monthly sales trend (units) Volume (LHS) yoy growth (RHS) (%)
Exhibit 18: Scooter segment – Monthly sales trend
(units)
Volume (LHS)
yoy growth (RHS)
(%)
60,000
120.0
100.0
50,000
80.0
40,000
60.0
30,000
40.0
20.0
20,000
0.0
10,000
(20.0)
0
(40.0)
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Sep-12
Nov-12

Source: Company, Angel Research

Outlook

We believe the long-term structural growth drivers of the Indian automobile industry such as GDP growth (leading to increasing affluence of rural and urban consumers), favorable demographics, low penetration levels, entry of global players and easy availability of finance are intact, which should support a 10-12% CAGR in auto volumes over FY2012-14E. As such, we prefer stocks that have strong fundamentals, high exposure to rural and export markets and command superior pricing power. We remain positive on AL and TTMT.

Exhibit 19: Relative valuation and recommendation

 

CMP

TP

Sales (`cr)

P/E (x)

P/BV (x)

RoE (%)

EV/EBITDA (x)

FY12-14E

Companies

Reco.

(

`)

(

`)

FY13E

FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E

EPS CAGR (%)

AL

Accumulate

28

31

14,490

16,606

12.5

9.7

2.3

2.0

13.6

16.1

6.3

5.3

16.2

BJAUT

Neutral

1,927

 

-

21,121

23,642

17.7

15.7

7.3

5.9

46.2

41.6

12.3

10.5

7.3

HMCL

Accumulate

1,821 1,956

24,743

27,996

15.4

14.0

6.6

5.2

48.3

41.9

7.9

6.6

9.7

MSIL

Neutral

1,489

 

-

42,019

50,246

22.5

15.8

2.6

2.2

11.9

15.1

11.7

7.8

36.6

MM

Neutral

956

 

-

40,035

46,272

17.5

15.2

3.9

3.3

24.3

23.4

10.2

8.5

15.9

TTMT*

Buy

273

319

192,330

219,770

7.4

6.1

2.0

1.6

31.2

28.9

3.9

3.2

11.1

TVSL

Accumulate

40

45

7,466

8,290

8.4

7.2

1.4

1.2

18.2

18.7

3.6

2.9

3.5

Source: Company, C-line, Angel Research; Note: Price as on December 3, 2012; *Consolidated financials

Research Team Tel: 022 - 3935 7800 DISCLAIMER E-mail: research@angelbroking.com A uto Sector Update |

Research Team Tel: 022 - 3935 7800

DISCLAIMER

E-mail: research@angelbroking.com

Auto Sector Update | November 2012

Website: www.angelbroking.com

This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment.

Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within.

Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals.

The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so.

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Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information.

Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement

Analyst ownership of the stock

Angel and its Group companies ownership of the stock

Angel and its Group companies' Directors ownership of the stock

Broking relationship with company covered

Ashok Leyland

No

No

No

No

Tata Motors

No

No

No

No

Maruti Suzuki

No

No

No

No

Mahindra & Mahindra

No

No

No

No

Bajaj Auto

No

No

No

No

Hero MotoCorp

No

No

No

No

TVS Motor

No

No

No

No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors.

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

A uto Sector Update | November 2012 6 t h Floor, Ackruti Sta r ,

Auto Sector Update | November 2012

6 th Floor, Ackruti Star, Central Road, MIDC, Andheri (E), Mumbai- 400 093. Tel: (022) 39357800

Research Team

Fundamental:

Sarabjit Kour Nangra Vaibhav Agrawal Bhavesh Chauhan Viral Shah Sharan Lillaney V Srinivasan Yaresh Kothari Ankita Somani Sourabh Taparia Bhupali Gursale Vinay Rachh Amit Patil Shareen Batatawala Twinkle Gosar Tejashwini Kumari

VP-Research, Pharmaceutical VP-Research, Banking Sr. Analyst (Metals & Mining) Sr. Analyst (Infrastructure) Analyst (Mid-cap) Analyst (Cement, Power, FMCG) Analyst (Automobile) Analyst (IT, Telecom) Analyst (Banking) Economist Research Associate Research Associate Research Associate Research Associate Research Associate

sarabjit@angelbroking.com

vaibhav.agrawal@angelbroking.com

bhaveshu.chauhan@angelbroking.com

viralk.shah@angelbroking.com

sharanb.lillaney@angelbroking.com

v.srinivasan@angelbroking.com

yareshb.kothari@angelbroking.com

ankita.somani@angelbroking.com

sourabh.taparia@angelbroking.com

bhupali.gursale@angelbroking.com

vinay.rachh@angelbroking.com

amit.patil@angelbroking.com

shareen.batatawala@angelbroking.com

gosar.twinkle@angelbroking.com

tejashwini.kumari@angelbroking.com

Technicals:

Shardul Kulkarni

Sr. Technical Analyst Technical Analyst Technical Analyst

shardul.kulkarni@angelbroking.com

Sameet Chavan

sameet.chavan@angelbroking.com

Sacchitanand Uttekar

sacchitanand.uttekar@angelbroking.com

Derivatives:

Siddarth Bhamre

Head - Derivatives

siddarth.bhamre@angelbroking.com

Institutional Sales Team:

Mayuresh Joshi

VP - Institutional Sales Sr. A.V.P- Institution sales Dealer Dealer Sr. Executive

mayuresh.joshi@angelbroking.com

Hiten Sampat

hiten.sampat@angelbroking.com

Meenakshi Chavan

meenakshis.chavan@angelbroking.com

Gaurang Tisani

gaurangp.tisani@angelbroking.com

Akshay Shah

akshayr.shah@angelbroking.com

Production Team:

Tejas Vahalia

Research Editor

tejas.vahalia@angelbroking.com

Dilip Patel

Production

dilipm.patel@angelbroking.com

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