Table of Contents
Investment thesis..........................................................................................................3
Valuation basis – Price/Earnings is the preferred metric .............................................9
Auto sales have revived .............................................................................................11
Government policy – Stimulus measures encouraging ..............................................12
Economic growth outlook improving ........................................................................13
Consumer finance –easing environment ....................................................................14
Rural growth: Weak monsoons will be sentiment dampener.....................................15
Capex to the forefront; however funding concerns ease ............................................17
Input costs: Base metals have rebounded off their multi year lows, to moderate
margin expansion.......................................................................................................18
India fuel prices – sensitive to WTI crude .................................................................19
Two wheelers:............................................................................................................21
Passenger Car Industry ..............................................................................................26
Commercial vehicle segment:....................................................................................36
Companies
Ashok Leyland..........................................................................................................42
Bajaj Auto.................................................................................................................53
Hero Honda...............................................................................................................63
Mahindra & Mahindra ..............................................................................................73
Maruti Suzuki ...........................................................................................................84
Tata Motors...............................................................................................................94