BSE Auto index hits record high
Eicher Motors, Hero MotoCorp and Bajaj Auto have rallied between 3% and 6% on BSE.
 "BSE Auto index hits record high")
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Shares of automobiles companies mainly two-wheelers are on a roll with the S&P BSE Auto index hitting record high on the BSE on Thursday.
Eicher Motors, Hero MotoCorp and Bajaj Auto have rallied between 3% and 6%, while Ashok Leyland and Maruti Suzuki (India) up 1% each on the BSE.
At 02:57 pm; the S&P BSE Auto index was up 1% or 246 points at 23,239, as compared with 0.17% rise in the benchmark S&P BSE Sensex. The auto index hit a record high of 23,261 in intra-day trade, surpasses its previous high of 23,210 touched on September 8, 2016.
Eicher Motors, the largest gainer among auto pack, hit a record high of Rs 29,983, up 7.7% on BSE. The stock rallied 16% in past one week after the company posted 31% year on year (YoY) growth in its consolidated net profit at Rs 407 crore for Q4FY17. Earnings before interest, tax, depreciation and amortization (EBITDA) margin improved to 31% from 29.2%.
“Eicher’s business performance has been strong with Royal Enfield seeming unfazed by the slowdown in the Indian economy. With Indians lapping up cruiser bikes from Royal Enfield and witnessing huge waiting periods, Royal Enfield has now enhanced its capacity and looks set to make hay as the proverbial sun continues to shine,” said analysts at ICICI Securities in result update.
Hero MotoCorp has moved higher by 5% to Rs 3,483, bouncing back 5.6% from its early morning low of Rs 3,296 on BSE.
Eicher Motors, Hero MotoCorp and Bajaj Auto have rallied between 3% and 6%, while Ashok Leyland and Maruti Suzuki (India) up 1% each on the BSE.
At 02:57 pm; the S&P BSE Auto index was up 1% or 246 points at 23,239, as compared with 0.17% rise in the benchmark S&P BSE Sensex. The auto index hit a record high of 23,261 in intra-day trade, surpasses its previous high of 23,210 touched on September 8, 2016.
Eicher Motors, the largest gainer among auto pack, hit a record high of Rs 29,983, up 7.7% on BSE. The stock rallied 16% in past one week after the company posted 31% year on year (YoY) growth in its consolidated net profit at Rs 407 crore for Q4FY17. Earnings before interest, tax, depreciation and amortization (EBITDA) margin improved to 31% from 29.2%.
“Eicher’s business performance has been strong with Royal Enfield seeming unfazed by the slowdown in the Indian economy. With Indians lapping up cruiser bikes from Royal Enfield and witnessing huge waiting periods, Royal Enfield has now enhanced its capacity and looks set to make hay as the proverbial sun continues to shine,” said analysts at ICICI Securities in result update.
Hero MotoCorp has moved higher by 5% to Rs 3,483, bouncing back 5.6% from its early morning low of Rs 3,296 on BSE.
Impacted by lower volumes and liquidation of BS III stocks, Hero MotoCorp, the country's biggest two wheeler maker, reported a 14% decline in profit for Q4FY17. The fourth quarter profit stood at Rs 718 crore against Rs 833 crore in FY16. EBIDTA margins for the quarter stood at 12.79% against 14.66% in same quarter of FY16.
“Revenue decreased by 8% YoY to Rs 6,920 crore, in?line with our expectation of Rs 6,710 crore on account of discounts that was offered during Mar’17 for disposing the old BS III inventory,” according to analysts at IndiaNivesh Securities.
Hero MotoCorp will invest capex of Rs 2,500 crore towards four initiatives; new product development, digitisation, phase?wise capacity expansion at existing facility at Gujarat and towards additional capacity at Andhra Pradesh and Bangladesh for FY18 and FY19. It also plans to launch a dozen models during FY18. The company will also commence its operation at its manufacturing facility in Bangladesh during the year.
“Revenue decreased by 8% YoY to Rs 6,920 crore, in?line with our expectation of Rs 6,710 crore on account of discounts that was offered during Mar’17 for disposing the old BS III inventory,” according to analysts at IndiaNivesh Securities.
Hero MotoCorp will invest capex of Rs 2,500 crore towards four initiatives; new product development, digitisation, phase?wise capacity expansion at existing facility at Gujarat and towards additional capacity at Andhra Pradesh and Bangladesh for FY18 and FY19. It also plans to launch a dozen models during FY18. The company will also commence its operation at its manufacturing facility in Bangladesh during the year.
| COMPANY | LATEST | PREV CLOSE | GAIN(%) |
| EICHER MOTORS | 29475.95 | 27851.75 | 5.8 |
| SCOOTERS INDIA | 68.95 | 65.70 | 5.0 |
| HERO MOTOCORP | 3440.00 | 3322.40 | 3.5 |
| BAJAJ AUTO | 2995.65 | 2899.40 | 3.3 |
| MAH. SCOOTERS | 2071.95 | 2007.70 | 3.2 |
| HMT | 46.00 | 45.15 | 1.9 |
| ESCORTS | 645.10 | 634.65 | 1.7 |
| FORCE MOTORS | 4619.00 | 4550.90 | 1.5 |
| ASHOK LEYLAND | 86.40 | 85.30 | 1.3 |
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