Motilal Oswal: Post-Festive Cautiousness Visible In November Auto Wholesales; No Positive Surprises
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Motilal Oswal Report
Festive season sales were reasonable, with no major negative surprise.
Current demand and low inventory sentiment in passenger vehicle and tractor suggests higher wholesales in the coming months.
On the flip side, two-wheeler and commercial vehicle original equipment manufacturers are expected to maintain a cautious stance, with no major inventory push.
Valuations reflect for recovery to sustain in the coming quarters, leaving a limited margin for safety for any negative surprises.
Hence, we prefer companies with -
- higher visibility in terms of demand recovery,
- a strong competitive positioning,
- margin drivers, and
- balance sheet strength.
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