Auto sector Q4 preview: four-wheeled makers to drive momentum, says Emkay; TVs car, M&M, Msil among the top choices | Einsmark news

Emkay Global Financial Services expects moderate growth in India’s automotive industry for Q4 FY25, with the emphasis on Eicher Motors, TVs Motor, Mahindra and Mahindra and Maruti Suzuki as important outdoor repatters despite overall slowdown in growth rates. Auto sector Q4 preview: four-wheeled makers to drive momentum, says Emkay; TVs Motor, M&M, Msil Among the best choices according to Emkay Global Financial Services, the Indian automotive industry is expected to see moderate growth in the fourth quarter of FY25, with four -wheelers leading the charge. The firm emphasized that although the momentum has delayed double-digit growth to high ankle or low double digits, selected companies such as Eicher Motors (EIM), TVs car, Mahindra & Mahindra (M&M) and Maruti Suzuki (Msil) are likely to appear as Q4 outdoor puff formers. The broker also revised his ratings and estimates in the sector, taking into account demand normalization and global uncertainties. 2W segment: EIM and TVSL to surpass Emkay said the two-wheeler segment is expected to deliver about 6 percent revenue growth in Q4FY25, supported by 20 percent and 11 percent growth at Eicher Motors and TVs car respectively. While EIM and TVSL benefit from strong volume growth – 24 percent and 15 percent yoy – others like Bajaj Auto and Hero Motocorp have witnessed performance. Emkay added that EIM’s share of premium bikes such as the Bullet series has probably increased, with the expansion of approximately 40 basis points due to higher volumes. TVL’s profits were powered by a favorable mix in domestic and export markets. 4W segment: M&M and Ashok Leyland in focus in the four-wheel category, Emkay estimated 11 percent turnover Yoy, powered by strong sales over most OEMs. It noted that Mahindra and Mahindra and Ashok Leyland are probably top performers, with M&M upgrading a rating to get “add”. Passenger vehicle volumes grew 18 percent at M&M and 3 percent at Maruti Suzuki. On the marginfront, M&M was seen that benefited from the introduction of EVs, while Tata Motors experienced mixed trends as a result of the performance of JLR and its domestic CV business. Emkay expects operational leverage to support the margin of the margin for Hyundai, Ashok Leyland and Tata Motors consecutively. Supplements: Uno Minda shines amid mixed trends that car supplements are likely to report 7 percent revenue growth, slightly lower than OEMs, Emkay said. The segment saw pressure as a result of tenderness in demand for ties and the slower growth at Bharat Forge (BHFC). EMKAY has downgraded BHFC to ‘add’ and lower the target price by 8 percent to £ 1200, with poorer trends in domestic and export markets. In contrast, Uno Minda has been upgraded to ‘add’ and is expected to perform better in the fourth quarter, supported by growth in content per vehicle and continued premiumization trends. Global challenges ask that FY26-27 earnings Emkay also revised Emkay’s earnings estimates for FY26 and FY27 with about 4 percent for its coverage universe. The broker quoted to delay domestic demand and global risks, including rising tariff wars and economic slowdown in important export markets such as the US. Shares with international exposure, such as BHFC, SAMIL and SPRAJIT, have seen sharper cuts in earnings estimates of 9 to 12 percent. Nevertheless, the recent redress in share prices has made valuations attractive to selected businesses, which led to the rating of upgrades for M&M and Uno Minda. Inventory election Emkay repeated its preference for the two -wheeled space, referring to visible replacement question, possible revival in the rural and more clarity in the electric vehicles segment. Among the manufacturers of passenger vehicles, Maruti Suzuki stands out with a strong emerging ICE -SUV launches, while Tata Motors still offer value to current JLR valuations. In the supplemental space, Shriram Pistons and Pricol are one of the beneficiary names. Eicher cars, TVs car and Maruti Suzuki stay Eicher Motors, TVs car and Maruti Suzuki. First published: 17 Apr 2025, 02:30 IST