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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.

SI Reporter  |  Mumbai 

Representative image
Representative image

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

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

Escorts, Force Motors, India, Maharashtra Scooters, VST Tillers Tractors, 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 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


First Published: Tue, September 25 2018. 09:58 IST
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