Automobile company’s shares surge after govt cut excise duty on fuel
ROADS & HIGHWAYS

Automobile company’s shares surge after govt cut excise duty on fuel

Shares of automobile manufacturers got a boost after the government slashed excise duty on fuel and imposed an export duty on steel inputs.

Two-wheelers, in particular, are high on investors' radar as they could profit the most from the government actions.

Hero MotoCorp, Ashok Leyland, and Bajaj Auto are the top choices of analysts' after the government's move.

The Bombay stock exchange (BSE) Auto index acquired the most among sectors on Monday, ending up 1.9% at 25,355.47. The Auto index gains were led by Ashok Leyland, Maruti Suzuki India, and Mahindra & Mahindra (M&M) gained about 4% each. Hero MotoCorp and TVS Motor Company grew by 1.5% each. Tata Motors acquired 0.9% and gained 0.9%, and Eicher Motors ended up 1.3%.

Analysts said the levy of export duties on steel inputs and outputs and reduction of customs duty on inputs is a booster for the sector, which has been encountering input price issues.

This is good for auto inventories because they were reeling under high input price pressures. Steel exports from India may become uncompetitive and domestic costs will come down, which is good for the auto industry as they will be able to maintain margins, and they don't require to raise the cost of the vehicles, said Gaurav Dua, senior VP at Sharekhan by BNP Paribas.

Among two-wheelers, Dua is bullish on Bajaj Auto and Mahindra & Mahindra among four-wheelers.

Petrol and diesel costs have increased 21% and 15%, respectively, in the last year and about 58% each in the last two years. The two-wheeler space has been most impacted by inflation due to the elevation in the total price of ownership over the last three years.

While all the original equipment manufacturers will benefit in uneven proportion, the key beneficiaries of the above steps in the auto sector would be Hero MotoCorp and Ashok Leyland, said Motilal Oswal.

Image Source 


Also read: Auto PLI attracts investment of Rs 74,850 cr for five years

Shares of automobile manufacturers got a boost after the government slashed excise duty on fuel and imposed an export duty on steel inputs. Two-wheelers, in particular, are high on investors' radar as they could profit the most from the government actions. Hero MotoCorp, Ashok Leyland, and Bajaj Auto are the top choices of analysts' after the government's move. The Bombay stock exchange (BSE) Auto index acquired the most among sectors on Monday, ending up 1.9% at 25,355.47. The Auto index gains were led by Ashok Leyland, Maruti Suzuki India, and Mahindra & Mahindra (M&M) gained about 4% each. Hero MotoCorp and TVS Motor Company grew by 1.5% each. Tata Motors acquired 0.9% and gained 0.9%, and Eicher Motors ended up 1.3%. Analysts said the levy of export duties on steel inputs and outputs and reduction of customs duty on inputs is a booster for the sector, which has been encountering input price issues. This is good for auto inventories because they were reeling under high input price pressures. Steel exports from India may become uncompetitive and domestic costs will come down, which is good for the auto industry as they will be able to maintain margins, and they don't require to raise the cost of the vehicles, said Gaurav Dua, senior VP at Sharekhan by BNP Paribas. Among two-wheelers, Dua is bullish on Bajaj Auto and Mahindra & Mahindra among four-wheelers. Petrol and diesel costs have increased 21% and 15%, respectively, in the last year and about 58% each in the last two years. The two-wheeler space has been most impacted by inflation due to the elevation in the total price of ownership over the last three years. While all the original equipment manufacturers will benefit in uneven proportion, the key beneficiaries of the above steps in the auto sector would be Hero MotoCorp and Ashok Leyland, said Motilal Oswal.Image Source  Also read: Auto PLI attracts investment of Rs 74,850 cr for five years

Next Story
Real Estate

Bennet & Bernard Unveil Dutch-Inspired ‘Casa El Toledo’ in Goa

Bennet & Bernard Group, Goa’s leading luxury real estate developer, has launched its newest project, Casa El Toledo, in Assagao. The enclave features 18 ultra-luxury 4 BHK Dutch-style villas blending European charm with tropical elegance. Each villa includes a private pool, double-height ceilings, open courtyards, alfresco dining areas, and English-inspired landscaping. The interiors are curated by noted Dutch designer Kelly Marie.   Reflecting the grandeur of the Dutch Golden Age, Casa El Toledo harmonises heritage aesthetics with modern sensibilities. Expansive interiors flow..

Next Story
Equipment

Godrej Delivers Heaviest Ecolaire Surface Condenser to US Project

Godrej Enterprises Group’s Process Equipment business has manufactured and delivered its heaviest Ecolaire® Surface Condenser to date, weighing nearly 450 metric tonnes, for a power-generation project in the United States. The project, powered by natural gas and partly designed for hydrogen compatibility, marks another step in advancing clean energy systems. Produced at the company’s GreenCo-certified Dahej facility in Gujarat, the equipment demonstrates India’s growing engineering capabilities and reinforces Godrej’s ‘Make in India for the World’ vision.  Hussain S..

Next Story
Infrastructure Energy

India, Brazil Discuss Energy Ties And Oil Investments

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri held discussions with Celso Luis Nunes Amorim, Special Advisor to the President of Brazil, and senior Brazilian officials to strengthen bilateral cooperation in the oil, gas, and energy transition sectors. The talks took place during a dinner hosted by Kenneth H da Nobrega, Ambassador of Brazil to India, at his residence in New Delhi.Mr Puri said the meeting focused on Indian investments in Brazil’s oil and gas sector, as well as expanding collaboration in energy transition and biofuels. “The enriching conversation revolved ar..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?