The automobile sector, which witnessed a healthy sales growth in FY18 led by higher demand from rural market and the fast-growing SUV segment, should continue to do well in the new fiscal year (FY19) as well, analysts say.
According to data, sales of passenger vehicles (PV) of the country's top six car makers cumulatively rose by about 11% in FY18, as compared to 9% growth in FY17.
Maruti Suzuki has underperformed the markets thus far in calendar year 2018 (CY18) by falling around 8% as compared to 0.4% rise in the Nifty50 and around 4% fall in the Nifty Auto index, ACE Equity data shows.
Analysts expect the earnings upgrade cycle for Maruti to continue in FY19 as well, driven by higher volumes and margins.
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