Last updated: 29 Jul, 2020 | 11:56 am
June quarter has been the one to forget for the automobile sector especially in the cars segment, with April having zero auto sales, Maruti has reported its first-ever loss since listing.The automobile sector which was already having a tough time for the past few years has been severely hit by the COVID crisis. As the company said the quarter was just equivalent to two weeks of regular working. While Maruti may not get a huge quantum of benefit as two-wheeler companies are getting because of the rising consumer preference for personal transport amid the coronavirus crisis, there might be some benefit in the Mini and compact segment which is the highest contributor to sales and also the companies forte segment. The outlook for India’s economy is gloomy, with a fall in disposable income of the people, rising unemployment it is a long road ahead for carmakers to reach to pre-covid sales level.
Our proprietary VGQM model has a SELL rating on the stock.