Nifty Auto hit an all-time high of 1.25% to 26,757.9 on Tuesday, in what is an action packed week for the sector, as heavyweights Maruti Suzuki India Ltd. and Mahindra and Mahindra Ltd. are expected to report their first quarter results and July sales figures on Aug. 1.
Apart from Maruti and M&M, Tata Motors Ltd. is also reporting its earnings this Aug. 1. All three passenger vehicle makers are expected to maintain margins.
Maruti Suzuki, specifically, is expected to report mid-single digit revenue growth with margins growing at 420 basis points to cross 13%, according to Bloomberg consensus. Profits are seen rising 36% to Rs 3,496 crore. The company reported a 5% volume growth in the first quarter. Nomura sees favorable mix and price hike as key to these results.
M&M is expected to see highest revenue growth among passenger vehicle makers at 16%, while maintaining stable margins and profitability. The operating margins are expected to expand by 30 basis points to 13.7%, as per Bloomberg estimates. Volume growth of 14% year-on-year for the April-June quarter has also been the highest among listed peers.
Tata Motors is expected to show strength led by margins and big beat on profitability compared to last year in the first quarter of fiscal 2025. Margins at 14.1% and profits expected to increase by 65% could be one of the reasons for propelling the stock to 52-week highs of Rs 1,179 per share on Tuesday.
Apart from these, shares of Ashok Leyland Ltd., which saw profits fall this quarter, hit 52-week high on Monday, on the back of strong commentary from the management on the electric bus segment.
Exide Industries Ltd. is expected to report strong margin expansion in its first-quarter earnings on Tuesday.
Monthly sales numbers for July are also expected to to be stable, with Nuvama seeing likely volume uptrend across segments. Two-wheelers will continue strong show, but new launches like Tata Curvv EV among others, will keep the sector abuzz.
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