Jefferies previewed a weak Q4 for Indian automakers due to the weak volume growth trends in most of the sector during the quarter.

“Higher discounts will hurt margins and profits,” said Arya Sen, analyst at Jefferies.

Sen stated that there are likely to be more estimate cuts post Q4 earnings across Indian original equipment makers (OEMs) despite material cuts to earnings estimates.

He prefered Maruti Suzuki India Ltd among the names in the sector

The Nifty Auto Index fell 0.61 per cent in early trading on Wednesday.

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