Motilal Oswal: Post-Festive Cautiousness Visible In November Auto Wholesales; No Positive Surprises 
Traffic travels along a highway as residential buildings stand in the background in the Chembur area in Mumbai, India. (Photographer Dhiraj Singh/Bloomberg)

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 -

  1. higher visibility in terms of demand recovery,
  2. a strong competitive positioning,
  3. margin drivers, and
  4. balance sheet strength.

Click on the attachment to read the full report:

Motilal Oswal November Auto Volumes Update.pdf

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