CMP Rs1,178, Target Rs1,252, Upside 6.3%
± Net
sales rise 3.6%yoy driven by 4% yoy realization growth. Volumes were
lower by 0.6% yoy and 18% on sequential basis owing to strike at Manesar
plant
± OPM
at 9.5% (a fall of 8bps yoy and 46bps qoq) was better than our
expectations owing to higher than expected realizations and lower other
expenditure
± Net profit jumped 18% yoy against expectation of a decline as other income surged 80% on yoy basis
± Higher interest rates, rising competition and increasing input prices are major headwinds for near term earnings growth
± Maintain Market Performer with a 9-month target price of Rs1,252
