Markets

Are automotive sector stocks set to make a u-turn?

Already grappling with falling sales in FY16, the auto sector has been further hit by measures in the Budget 

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Published 5 years ago on Mar 23, 2016 1 minute Read

 Ambrish Mishra, director, institutional equity research, JM Financial 

Auto companies are trading in a band of 13x to 25x estimated FY18 price-to-earnings, which we believe is justified given the earnings growth momentum of most companies. We expect the industry earnings to grow at 15-20% annually over the next two years on the back of strong volume growth, benign input prices, operating leverage and superior sales mix. Over the next few months, we could see a positive impact on volumes as a result of reco

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