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Higher
sales boost two-wheeler stocks
Nitin Mathur
New Delhi, Jan 2: Two-wheeler stocks seem to be in top
gear powered by the steady growth in motorcycle sales. Counters
like Bajaj Auto, Hero Honda, TVS Motors and LML have gained
up to 14 per cent in the past six trading days even as the Stock
Exchange, Mumbai (BSE) Sensex remained range-bound due to war
worries. Investors were active in these counters on Wednesday
as top companies declared a spurt in December 2001 sales over
the same month previous year.
According to a Delhi-based broker, "The motorcycle segment
has been driving up the top line of two wheeler manufacturers.
Market is upbeat on these counters as the motorcycle segment
also yields higher margins compared to other two-wheeler segments.
These companies are thus expected to come out with better financial
results in the coming quarters." These stocks have zoomed
32-94 per cent since October 2001.
He also added that the auto companies have been beckoning the
consumers with a host of new launches during the past few weeks
which has also revved up the market. Though the December 2001
sales have been fractionally lower compared to the November
2001 sales, the broker says that this is also because customers
generally postpone their purchases in December to the next year.
TVS Motors has been the top gainer in the past seven trading
days shooting up by about 14 per cent to close at Rs 164.75
on January 2. The stock has gained about 90 per cent since October
1. The company’s recently launched bike christened ‘Victor’
has been received well by the customers. During the month of
December 2001, the company has recorded a 10.5 per cent rise
in two-wheeler sales which has touched 73,259 vehicles. Its
bike sales have also shot up by 40 per cent to 43,220 units.
As a result the stock gained 2.52 per cent on January 2.
Hero Honda, market leader in the motorcycles segment, also shot
up by over 10 per cent since December 24, 2001 to close at Rs
259.55 as on January 2. The company’s December sales have also
zoomed by 46 per cent to 1.22 lakh bikes, as against 0.84 lakh
in December 2000. On Wednesday, the company has also raised
its sales target for the fiscal 2002 making the scrip climb
2.49 per cent during the day.
Bajaj Auto also gained by Rs 24 during the period to close at
Rs 394 as on January 2.
The scrip spurted 3.56 per cent on Wednesday as the company
declared an 85 per cent jump in December sales of motorcycles
compared to that in December 2000. The company has also recently
added another model in its portfolio of offerings with the launch
of ‘Pulsar’. The stock has also gained 60 per cent in about
two months since October.
Other stocks like LML and Kinetic Engineering also gained 8
per cent and 3.33 per cent in the past seven trading days.
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