Auto index hits 52-wk low; Maruti Suzuki, Escorts down over 15% in 1-month

Escorts, Force Motors, Maharashtra Scooters, VST Tillers, Eicher Motors, Atul Auto, Amara Raja Batteries, Exide Ind, Motherson Sumi Systems and Minda Ind were down 10% to 28% in past one month.

Shares of automobile companies were trading weak for the sixth straight session on concerns of a slowdown in demand due to rising crude oil and commodity prices, especially petrol and diesel.

The Nifty Auto index (down 1% at 9,903) and the S&P BSE Auto index (down 1% at 22,168) hit their respective 52-week lows in intra-day trade on Tuesday. In past one month, the auto indices have underperformed the market by falling 10% as compared to a 5.5% decline in the benchmark indices.

Escorts, Force Motors, Maruti Suzuki India, Maharashtra Scooters, VST Tillers Tractors, Eicher Motors and Atul Auto from automobiles and Setco Automotive, Amara Raja Batteries, Exide Industries, Motherson Sumi Systems and Minda Industries from auto ancillaries sector have seen their market price declined by in the range of 10% to 28% during the month.

Brent crude climbed above $80 a barrel on Monday, its highest level in nearly four years after OPEC and its allies signalled less urgency to boost output, despite U.S. pressure to temper prices.

“The rising crude oil and commodity prices especially petrol and diesel and frequent policy changes are the key concerns for the growth of the auto industry,” according to CARE Ratings.

Also, with the Reserve Bank of India (RBI) increasing repo rate from 6.25% to 6.5% in August 2018, the interest cost is expected to put further pressure on auto demand, the rating agency said in a recent note.

In August 2018, auto industry sales (including PVs, CVs and two & three wheelers) registered a low single-digit growth of about 6% year on year in overall sales vis-à-vis a 13.6% growth registered a year ago.

Going forward in FY19, CARE Ratings expects the auto industry to witness healthy growth as the disruptions caused by various policy implementations (demonetization, ban on BS-III vehicles, GST, rate revisions) have almost moderated. Also, demand is expected to improve especially for tractors and commercial vehicles on back of various initiatives taken by the government in the Union Budget 2019 for the agriculture and infrastructure sectors.

COMPANY	LATEST	ONE-MONTH BEFORE	LOSS(RS)	LOSS(%)
ESCORTS	639.05	891.30	-252.25	-28.30
FORCE MOTORS	1873.00	2515.05	-642.05	-25.53
SETCO AUTOMOTIVE	39.60	52.80	-13.20	-25.00
MAH. SCOOTERS	2491.25	3192.00	-700.75	-21.95
AUSTIN ENGG CO	60.00	75.70	-15.70	-20.74
PRECISION CAMSHF	56.00	69.90	-13.90	-19.89
SUNDARAM BRAKE	400.00	487.20	-87.20	-17.90
SANDHAR TECH	318.25	383.30	-65.05	-16.97
SML ISUZU	730.00	874.75	-144.75	-16.55
RANE BRAKE LIN.	695.65	831.35	-135.70	-16.32
RACL GEARTECH	58.80	70.15	-11.35	-16.18
SAR AUTO PROD.	180.00	213.85	-33.85	-15.83
MARUTI SUZUKI	7719.60	9163.40	-1443.80	-15.76
L G BALAKRISHNAN	446.95	526.05	-79.10	-15.04
MOTHERSON SUMI	256.75	300.95	-44.20	-14.69
OMAX AUTOS	94.40	110.35	-15.95	-14.45
VST TILL. TRACT.	1880.20	2194.30	-314.10	-14.31
JAY BHARAT MAR.	376.05	437.75	-61.70	-14.09
TIMKEN INDIA	613.00	710.40	-97.40	-13.71
JBM AUTO	306.90	355.60	-48.70	-13.70
MENON BEARINGS	80.60	93.20	-12.60	-13.52
MINDA INDS.	348.90	401.45	-52.55	-13.09
AMARA RAJA BATT.	752.60	864.45	-111.85	-12.94
PRICOL LTD	56.00	64.30	-8.30	-12.91
SHARDA MOTOR	1711.05	1960.00	-248.95	-12.70
ENDURANCE TECH.	1353.10	1544.60	-191.50	-12.40
STEEL STR. WHEEL	1048.00	1191.40	-143.40	-12.04
SAMKRG PISTONS	220.00	249.40	-29.40	-11.79
ATUL AUTO	340.00	383.60	-43.60	-11.37
AUTOLITE (I)	49.95	56.35	-6.40	-11.36
GABRIEL INDIA	127.05	143.25	-16.20	-11.31
EICHER MOTORS	25551.00	28796.70	-3245.70	-11.27
Z F STEERING	968.00	1090.70	-122.70	-11.25
JAMNA AUTO INDS.	74.50	83.70	-9.20	-10.99
BANCO PRODUCTS	202.30	227.00	-24.70	-10.88
EXIDE INDS.	264.00	293.00	-29.00	-9.90
M & M	874.10	968.80	-94.70	-9.77
TATA MOTORS-DVR	126.95	139.30	-12.35	-8.87
ASHOK LEYLAND	119.00	129.30	-10.30	-7.97
TATA MOTORS	240.30	255.60	-15.30	-5.99