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.
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.