Maruti Suzuki, Bajaj Auto extend gains post June sales

Shares of Maruti Suzuki India and Bajaj Auto were quoting higher for the third straight trading day after these companies delivered a healthy volume performance in June’18 on lower year on year (YoY) base led by pre Goods and Services Tax (GST)-led disruptions.

Maruti Suzuki India was up 1.6% to Rs 9,122, gaining 3% in past three trading sessions, after the company delivered strong performance in June’18, with its monthly vehicle sales standing at 144,981 units (+36% YoY and -16% MoM). The company’s month on month (MoM) sales decline was due to half yearly maintenance shutdown during last week of the month. Its UV segment grew by 39% YoY (-25% MoM) supported by healthy sales of Brezza and S-Cross.

Bajaj Auto was trading 2% higher at Rs 2,924, extending its past two days 2% gain, after the company said its total sales grew 65% YoY at 404,429 units in June 2018, due to strong domestic performance in 2W and 3W segment led by new launches and healthy export 3W sales.

“Improvement in middle-east countries amid rising crude price aided overseas sales. According to the Management, new markets like Cambodia, Ghana and Iraq etc. are contributing to exports growth. The performance of two wheelers was strong with growth of 65% YoY (-1.4% MoM) to 337,752 units,” Reliance Securities said in auto sector update.