FY2021:Performance snapshot of Automobile Company Stocks
Updated: Apr 14
Fy2021 has not been a good year for the Indian economy. The Automobile industry too suffered the effects of the Pandemic.
The first quarter of FY2021 had been a total washout, what with a complete lockdown in place; and all the commercial establishments being closed.
The second and third quarters saw positive signs, what with the pent-up demand as also the rural markets doing well due to the economy being dependant on the rural sector.
Q4 too was ended on a positive note for most. However, rather surprisingly, the Automobile Stocks outperformed beyond expectations. The overall stock market too performed very well with the BSE Auto Index closing trade on 31 March 2021 at 22,252.21, up 107% from 1 April.2020.
Tata Motors stock value increased over 300 percent in FY2021
Maruti Suzuki stock fell 8 percent in the last quarter but gained nearly 60 percent in the fiscal
Eicher (Royal Enfield), Bajaj, Hero, and TVS stock also post significant gains
The last quarter of FY2021 was particularly good for the passenger vehicle and two-wheeler stocks. The top gainers were: Tata Motors 62%, Mahindra & Mahindra 12.44%.
However, Maruti Suzuki was an underperformer: down 8%.
Amongst Two Wheelers, TVS Motor grew by 18 %, Bajaj Auto and Eicher Motors by 7% in the last quarter of FY2021.
Tata Motors :
Tata Motors has been one of the shining stars, gaining 300% plus gains this fiscal. Its Passenger Vehicle sales soared to an eight-year high. A remarkable turnaround indeed.
Mahindra & Mahindra :
The company gained nearly 180% this FY. It closed at Rs.795.25 per share on March 31. This was just 16.48% away from its 52 weeks high of Rs.952.05 per share. The New Thar has been getting a lot of traction and been judged the 2021 car of the year. On the sales numbers, while Mahindra & Mahindra was at No.3 position, its UV market share slipped to 15.38% (from 19% a year ago). The company also saw Mr.Pawan Goenka, ending his 27-year tenure.
Maruti Suzuki India :
In spite of underperforming at the stock market, the share value of Maruti Suzuki continued to be at the same level. It continued to maintain its leadership position in the Passenger Vehicle as also the Utility Vehicle segment. The company had exited from the Diesel Engine segment but still registered a drop of only 9.16% from its last year's sales. A creditable performance indeed.
The stock has yielded nearly 60% return and it was only 18.34% away from its 52 weeks high of Rs.8329/share. 18.34 percent away from its 52-week high of Rs 8,329/share.
Eicher Motors :
Royal Enfield made waves with its Meteor 350 bagging the 2021 Bike of the year. The bike maker also clogged a 6% growth in Feb on a YoY basis. The stock value too was just 14.26% away from its 52 weeks high of Rs.3037/share. The company has been one of the other outperforming stocks.
TVS Motor Company :
TVS Motor recorded over 130% gains in FY2021. This was backed by its strong fundamentals and a 7% compounded annual growth in its net profit in the last 3 years.
It clocked export sales of 1,00,000 units in March 2021. The company also took over the British Bike brand Norton. Norton is constructing its new factory at Solihull and is expected to start production by the second quarter of this calendar year.
Hero MotoCorp :
The company continued to maintain its leadership position in bikes and gaining leads in the scooters. Its performance spread cheer in the stock market. The stock was close to 83 percent in this rather fiscal.
The company crossed the 100 million cumulative production milestone, rejigged its leadership team, and also finalized its partnership with Harley Davidson. The stock was just 19.71% away from its 52 weeks high of Rs.3629.05/share.
Bajaj Auto :
The clocked 80% gains in the stock market in FY2021. The stock was about 15 percent away from its 52-week high of Rs 4,361.40/share. Bajaj Pulsar continued to amongst the five most selling bikes in India.
The shortage of semi-conductors has however affected production but still, the company clocked sales of 19,79,936 two-wheelers in the domestic market (-18 percent) and exported 17,56,656 units (-6 percent) in the first 11 months of this Covid-impacted fiscal.
A buzzing year for the Auto stocks on Dalal Street. FY2021-22 could be another challenging year what with the Pandemic woes not yet over and restrictions in place, in many states, due to this. The shortage of semi-conductor chips too could pose a major bottleneck in the production plans. A year poignant with many possibilities and problems.