Hitesh Goel of Kotak Institutional Equities spoke at length about auto sector’s Q3 performance and shared his views and on key auto stocks.
Goel said that Q4 looks muted right now, and the sentiment on consumer side is quite low. “However, good thing is that some companies have corrected their dealer inventory quite a bit, in Q3 and that’s why there was a significant fall in the wholesale volumes,” he added.
“Companies give wholesale volumes rather than retail volumes, so that in Q4 there could be divergent trends,” Goel further added.
Talking about Bajaj Auto, he said, “Bajaj will do better but if you look at its performance closely, they are taking a hit on the margins on the domestic side.”
Speaking about Maruti Suzuki, Goel said, "Maruti will benefit from a shift to petrol from diesel. Further ahead, the company will be least impacted due to BS-VI transition. "