BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Systematix Research Report
As highlighted in our latest note, the demand momentum for passenger vehicles remains healthy. Inventory is at multi-year low levels. Two-wheeler demand remains subdued with a weak offtake, especially in urban pockets.
It is a seasonally strong quarter for commercial vehicles; however, a recent spike in Covid-19 cases could hurt retail demand.
Latest media reports indicate a marginal increase in commodity costs in Q3 FY22. However, commodity-led headwinds should recede with commodity prices stabilising at current levels.
For ancillaries, any impact of the lag in commodity price pass-through could hurt operating margins (utilisation levels at ~70% for Q3).
We expect component players with global exposure to see the impact of supply chain constraints and Covid-19 on utilisation levels.
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