🔔Opening Bell | April 9, 2024
#KeyDevelopments
🔸As per FADA data, auto sector retail volumes in March 2024 stood at 21.3 lakh units, up 3% on YoY basis.
🔸Within category 3W sales were up 17% YoY growth whereas 2-W grew 5% YoY while PV & CV sales volume were down 6% each.
#StocksToWatch
1⃣#ExideIndustries
🔸Exide Energy Solutions Limited, the wholly owned unlisted subsidiary of Exide Industries Limited, has signed a non-binding MOU with Hyundai Motor Company and Kia Corporation for strategic cooperation in India's EV market.
🔸Both parties will work together for development, production and supply of battery cells (LFP chemistry) for Hyundai Motor's electric vehicles dedicated to the Indian market.
🔸We have a positive view on Exide Industries. Our key investment thesis is based upon margin expansion at its base lead acid battery business and sizeable capex foray into new energy Li-On cell space (~₹ 2,000 crore invested till date out of the total initial investment of ~₹ 4,000 crore, commissioning in CY25).
🔸It is potentially the first Indian company to set up cell manufacturing plant in India and has guided for healthy margins and return ratios profile in this domain.
2⃣
#MazagonDockShipbuilders
🔸 Recorded revenue from operations of ~Rs 9400 crores (provisional and unaudited) for FY24E, registering a growth of ~20% YoY, which is ahead of street expectations and management’s guidance of 10-12% YoY.
🔸Implied revenue growth for Q4FY24 stands at ~46% YoY.
🔸Order backlog is estimated to be at ~Rs 35500 crore (3.8x FY24 revenues), provides healthy revenues visibility.
🔸Orders pipeline is also robust considering the upcoming contracts in submarines, destroyers, frigates.
🔸Company has also been exploring opportunities in exports & repair/refit in defence or commercial shipbuilding where new contracts would emerge in future.
🔸However, timely placement of these large orders would be the key for long-term growth
3⃣
#TataMotors
🔸JLR reported wholesale volumes of 1.1 lakh units for Q4FY24 (up 16% YoY) and 4.01 lakh units for FY24 (up 25% YoY).
🔸By brand, compared to the prior year, wholesale volumes increased in the quarter for Range Rover (up 22% to 58,280 units), Defender (up 5% to 28,702 units), Jaguar (up 39% to 13,528 units) and Discovery (up 1% to 9,680 units)
🔸Volumes for the quarter and full year are on expected lines.
🔸Key monitorable going forward for the company would be margin performance in Q4FY24 amidst already high margins reported in last quarter at 16.2% and guidance on volume growth for FY25E.
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