Team-BHP > BHP India > The Indian Car Scene


Reply
 
Thread Tools Search this Thread
Old 11th June 2019, 18:20   #376
Team-BHP Support
 
SmartCat's Avatar
 
Join Date: Jun 2007
Location: Bangalore
Posts: 4,130
Thanked: 20,611 Times
Default Re: Guide: Investing in shares of the automotive sector

Quote:
Originally Posted by rrsteer View Post
Thank, you thats a superb suggestion.
Any ball park figures of any Indian car/ bike from inception to market success, what was time taken for the project to recoup all investment costs ?
I distinctly remember reading somewhere that M&M spent about Rs. 600 crores to develop the 1st gen Scorpio (launch year 2003). This includes engine development costs (outsourced to AVL, Austria). Now find out how many 1st gen scorpios they sold! It is reasonable to expect gross margins of 30% of relatively expensive model like Scorpio. That is, raw material costs would be approx 70%

Not sure if M&M invested in a new factory for Scorpio or they used existing ones. Not sure about costs of dies, paint booth, assembly line etc either. Perhaps FY02 or FY03 M&M Annual Report has this data.

Last edited by SmartCat : 11th June 2019 at 18:56.
SmartCat is offline   (4) Thanks Reply With Quote
Old 8th July 2019, 18:12   #377
Senior - BHPian
 
bluevolt's Avatar
 
Join Date: Jan 2011
Location: New Delhi
Posts: 3,049
Thanked: 2,432 Times
Default Re: Guide: Investing in shares of the automotive sector

Maruti stock now below 6000! Is Maruti stock going to be another Tata motors stock?

Any views on the long term future of the stock?
bluevolt is offline   Reply With Quote
Old 8th July 2019, 19:08   #378
Team-BHP Support
 
SmartCat's Avatar
 
Join Date: Jun 2007
Location: Bangalore
Posts: 4,130
Thanked: 20,611 Times
Default Re: Guide: Investing in shares of the automotive sector

Quote:
Originally Posted by bluevolt View Post
Maruti stock now below 6000! Is Maruti stock going to be another Tata motors stock? Any views on the long term future of the stock?
As long as news flow about production cuts, automotive dealership closures and NBFC issues keeps hitting Economic Times front page, all automotive stocks will keep trending downwards. But Maruti is very different from Tata Motors because they are market leaders and their balance sheet is strong (no debt). Personally, I would prefer buying largecaps at price to earning ratio < 20 (right now, Maruti is still trading at 25 PE).
SmartCat is offline   (2) Thanks Reply With Quote
Old 8th July 2019, 19:48   #379
BHPian
 
Join Date: Jul 2014
Location: Montreal, CA
Posts: 202
Thanked: 57 Times
Default Re: Guide: Investing in shares of the automotive sector

Planning to invest some money in stocks, anything good that I could be looking at as of right now? I'm thinking of few years as of right now.
sweetvar26 is offline   Reply With Quote
Old 15th July 2019, 22:11   #380
BHPian
 
Join Date: Aug 2008
Location: Delhi
Posts: 110
Thanked: 37 Times
Default Re: Guide: Investing in shares of the automotive sector

Hi smartcat! What’s your current opinion on Kpit and Izmo? Izmo had bagged a defence deal with the govt to make guns.

Thinking of investing a tiny amount for 5yrs.
sinhead is offline   Reply With Quote
Old 15th July 2019, 23:21   #381
Team-BHP Support
 
SmartCat's Avatar
 
Join Date: Jun 2007
Location: Bangalore
Posts: 4,130
Thanked: 20,611 Times
Default Re: Guide: Investing in shares of the automotive sector

Quote:
Originally Posted by sinhead View Post
Hi smartcat! What’s your current opinion on Kpit and Izmo? Izmo had bagged a defence deal with the govt to make guns.
I used to own KPIT Tech, but exited it a couple of years back. Their merger/demerger shenanigans (with Birlasoft) makes my head spin. Wait to see how their perform individually before you invest in them.

To begin with, avoid microcaps like Izmo (Rs. 50 cr marketcap). Although it is reporting profits every year, they have not paid a single paisa as dividend. It is impossible to find out if the company is reporting real profits or imaginary profits
SmartCat is offline   (2) Thanks Reply With Quote
Old 16th July 2019, 17:15   #382
Senior - BHPian
 
bluevolt's Avatar
 
Join Date: Jan 2011
Location: New Delhi
Posts: 3,049
Thanked: 2,432 Times
Default Re: Guide: Investing in shares of the automotive sector

Quote:
Originally Posted by SmartCat View Post
THE EASIER WAY

You are in Manali and want to get to Leh. You can either drive a car yourself or take the bus! The equivalent of taking a bus is to invest in the UTI Transportation & Logistics Fund. This mutual fund invests only in automobile stocks and auto component makers.
Smartcat, In the current scenario where we are witnessing a slowdown in automobiles, what are your thoughts about UTI Transporation and Logistics fund?

Should I continue my SIPs in this fund or think about alternatives?
bluevolt is offline   Reply With Quote
Old 16th July 2019, 19:09   #383
Team-BHP Support
 
SmartCat's Avatar
 
Join Date: Jun 2007
Location: Bangalore
Posts: 4,130
Thanked: 20,611 Times
Default Re: Guide: Investing in shares of the automotive sector

Quote:
Originally Posted by bluevolt View Post
Smartcat, In the current scenario where we are witnessing a slowdown in automobiles, what are your thoughts about UTI Transporation and Logistics fund? Should I continue my SIPs in this fund or think about alternatives?
SIP works best during cyclical downturns, and does not work too well when stocks are going up. But how much do you have in this particular fund in percentage terms, when compared to your overall mutual fund portfolio? Stop your SIP if this percentage is too high.

Personally, I have 15% exposure to automobile sector in my equity portfolio. This includes -

- Passenger cars
- Two wheelers
- Commercial vehicles
- Tyre makers
- Battery makers
- Lubricants
- Auto component makers
- Fuel retailers
SmartCat is offline   (2) Thanks Reply With Quote
Old 16th July 2019, 19:16   #384
Senior - BHPian
 
bluevolt's Avatar
 
Join Date: Jan 2011
Location: New Delhi
Posts: 3,049
Thanked: 2,432 Times
Default Re: Guide: Investing in shares of the automotive sector

Quote:
Originally Posted by SmartCat View Post
SIP works best during cyclical downturns, and does not work too well when stocks are going up. But how much do you have in this particular fund in percentage terms, when compared to your overall mutual fund portfolio? Stop your SIP if this percentage is too high.

Personally, I have 15% exposure to automobile sector in my equity portfolio. This includes -

- Passenger cars
- Two wheelers
- Commercial vehicles
- Tyre makers
- Battery makers
- Lubricants
- Auto component makers
- Fuel retailers
For this particular fund, my allocation is 10% per month out of my overall mutual fund portfolio.
bluevolt is offline   (2) Thanks Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Investing in Gold ETF or physical Gold - Which is better amitk26 Shifting gears 38 19th May 2017 11:48
BMW shares drop on report that X3 diesel's emissions exceeded EU limit TheDoctor The International Automotive Scene 5 26th September 2015 16:44
Ceat Tyres investing Rs. 400 crore in new plant at Nagpur Aditya Tyre & Alloy wheel Section 1 11th December 2014 18:55
2014 Honda CBR 250R shares design with the recently unveiled CBR 300R JayPrashanth Motorbikes 6 25th October 2013 17:21
2011 BS4 Nano shares my garage kingofmyworld Test-Drives & Initial Ownership Reports 18 13th August 2011 03:24


All times are GMT +5.5. The time now is 00:29.

Copyright ©2000 - 2019, Team-BHP.com
Proudly powered by E2E Networks