Auto companies may report good sales but weaker profits this quarter.
Most companies sold more vehicles, so revenue is expected to grow. But the cost of steel, aluminium, copper and other raw materials has also gone up, which could reduce profit margins. Expected trend: Maruti Suzuki: Strong sales, but profit may be lower. Mahindra & Mahindra: SUV demand remains strong, but margins may be under pressure. Tata Motors: JLR business could keep profits under pressure. Bajaj Auto and TVS Motor: Better numbers expected because of strong two-wheeler demand. Ashok Leyland: Steady growth backed by commercial vehicle demand. The market may focus more on profit margins than sales growth this results season.
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