Industry Profile: Indian automobile industry is one of the largest and one of the most competitive in the world. In FY 15-16 production total was 23.96 million vehicles. The sector accounts for 7.1 percent of the GDP of India out of which 81% is the Two-wheeler market. Indian automotive aftermarket is estimated to grow at around 10-15 percent to reach US$ 16.5 billion by 2021 from around US$ 7 billion in 2016. It has the potential to generate up to US$ 300 billion in annual revenue by 2026, create 65 million additional jobs, and contribute over 12 percent to India’s Gross Domestic Product. Maruti in Car and Hero Moto corp is in the Two-wheeler market are the leader. Passenger Vehicle holding 13% market. Maruti Suzuki expects the Indian passenger car market to reach four million units by 2020, up from 1.97 million units in 2014-15. Mr. Young Key Koo, Managing Director, Hyundai Motor India Ltd, has stated that India is a key market for the company, not only in terms of volumes but also as a hub of small products for exports to 92 countries. Like many companies trying to increase revenue, the rural market is large for further growth. India is also being one of the leading exporters of automobiles and has strong export growth expectations for the near future. In April-March 2016, overall automobile exports grew by 1.91 percent. PV, Commercial Vehicles (CV), and Two Wheelers (2W) registered a growth of 5.24 percent, 16.97 percent, and 0.97 percent respectively in April-March 2016 over April-March 2015. The industry has attracted Foreign Direct Investment (FDI) worth US$ 15.79 billion during the period April 2000 to September 2016, according to data released by the Department of Industrial Policy and Promotion (DIPP). Several automobile manufacturers, from global majors such as Audi to Indian companies such as Maruti Suzuki and Mahindra & Mahindra, are exploring the possibilities of introducing driverless self-driven cars for India.
Company Profile: The company was incorporated in 1982. It is one of the leading manufacturers of commercial vehicles. It has manufacturing facilities located in Madhya Pradesh, Tamil Nadu, Maharashtra, and Haryana. the company is also a manufacturer of Famous Royal Enfield. It manufacturer six different models of Royal Enfield. the company also manufactures various kinds of auto parts and gears.
Shareholding Pattern: BSE Data
Financials and Ratios : [table id=69 /]
Future Prospects: Royal Enfield, the brand due to which this stock is running, is not showing any sign to stop or slowing down sales. Due to share price, the stock is not right for trade and that is what makes it less liquid. one thing is sure that demand for Bullet will always be there whatever you may call it and the profit margin the company is earning over Bullet is attractive and so the sky is the limit for the stock price if valuations support.
