Which Auto Stock To Bet on in 2013 Maruti, M&M or Tata?


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I just came across an interesting article and analysis on which can be the best auto bet in 2013.

The year 2012 proved a smooth drive for auto stocks. Listed car makers like Tata Motors along with Maruti Suzuki and Mahindra and Mahindra easily raced past the broader BSE auto index, which incidentally is at a life-time high.

Tata Motors shares gained 75 per cent over the last year while Maruti Suzuki and M&M shares are up 64 per cent and 50 per cent respectively.

Auto makers are emerging out of a bad year - car sales have grown at 9-10 per cent in this fiscal year so far. With projections of 15-16 per cent growth in the next fiscal year, auto makers will be readying their strategies to corner a larger market share.

So what can be the best auto bet in your portfolio?

Tata Motors, the country's biggest commercial vehicles maker, is a global play, with more than 90 per cent of its profits coming from the luxury car division Jaguar Land Rover.

M&M has become a must in most portfolios because of its robust growth, mainly on the back of popular diesel-powered off-road vehicles such as Scorpio and XUV 500. However, tractor sales have weighed on the company's performance. M&M is the world's biggest tractor maker by volume.

In contrast, labour problems at its Manesar plant have hit Maruti Suzuki’s productivity. Also, a shift towards diesel cars has hurt sales of its small cars.
source:Maruti versus M&M: Which auto stock to bet on in 2013? - NDTVProfit.com


So what can be the best auto bet in your portfolio?
Please share your thoughts here.
 

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