Finvezto Daily Market Bytes, 03 Jan 2025
2-Wheeler Sales Mixed in December; Royal Enfield's Sales Surge; Manufacturing Momentum Eases & Key Stock Updates.
In today’s edition, we cover:
2-Wheeler Sales Mixed in December
Royal Enfield's Sales Surge
Manufacturing Momentum Eases
Key Stock Updates
2-Wheeler Sales Mixed in December
Hero MotoCorp and Bajaj Auto faced sales decline in December 2024, while TVS Motor and Royal Enfield showed growth.
Hero MotoCorp saw domestic sales drop 22% to 2,94,152 units, though their calendar year 2024 showed 7.5% growth.
Bajaj Auto saw a 19% decline to 1,28,335 units, though their export performance offered some consolation.
TVS Motor kept momentum with steady domestic sales of 2,15,075 units. Their EV segment rocked, surging 79% to 20,171 units.
Royal Enfield posted strong numbers. More on Royal Enfield in the next byte. Eicher Motors was up significantly yesterday.
Suzuki Motorcycle India grew 14% to 78,834 units, maintaining consistent growth.
The overall two-wheeler market grew in 2024, reaching 5.9 million units compared to 5.5 million in 2023.
Royal Enfield's Sales Surge
Royal Enfield's sales jumped 25% to 79,466 motorcycles in December 2024, with both domestic and export markets showing strong performance.
The classic 350cc segment (Royal Enfield's core strength) came roaring back. It clocked sales of 69,476 units.
The Himalayan 450 and Interceptor 650 hit 9,990 units.
Overseas shipments nearly doubled to 11,575 units.
CEO B Govindarajan's strategy of pushing premium bikes in international markets seems to be paying off.
Particularly with the 450cc and 650cc models finding takers globally.
Eicher Motors was up 8%+ yesterday.
Manufacturing Momentum Eases
India's Manufacturing PMI slid to 56.4 in December 2024 from November's 56.5.
However, it is still a good number indicating expansion.
If the number is above 50, it indicates healthy expansion in New Orders, Production, Employment, Supplier Deliveries and Inventory Levels.
Manufacturing Job creation hit its fastest pace in 4 months, marking the tenth straight month of hiring.
It shows Management’s confidence in future demand. A positive.
Key Stock Updates
NEW ORDERS
🟢 Force Motors secured 2,429 ambulance supply order worth Rs 410 Cr from Uttar Pradesh, to be delivered by March 2025.
PARTNERSHIPS/INVESTMENTS/ACQUISITIONS
🟢 Varun Beverages invests Rs 413 Cr in South African subsidiary to repay debt and strengthen PepsiCo franchise operations.
🟢 Brigade Enterprises acquires 51% stake in Ananthay Properties for real estate development projects.
🟢 IRFC partners with REMCL to finance renewable energy projects for Indian Railways.
CORE BUSINESS UPDATES
🟢 DMart reports 17% YoY growth in Q3 standalone revenue to Rs 15,565 Cr, operates 387 stores as of December.
🔴 Hero MotoCorp's December sales drop 17% to 3.24 lakh units, though exports surge 91% to 30,754 units.
🔴 Hindustan Zinc reports 2% decline in Q3 mine metal production to 265 kilotonnes, refined metal production remains flat.
🟢 Biocon Pharma receives NMPA China approval for Tacrolimus capsules used in organ transplant treatment.
🟢 Wockhardt receives approval for new antibiotic Miqnaf to treat community-acquired bacterial pneumonia.
🟢 Pricol to sell wiping business division to Auto Ignition for Rs 20 Cr through slump sale.
🟢 CSB Bank reports strong Q3 with 26% growth in advances, deposits rise 22% showing robust performance.
🟢 V2 Retail posts 58% jump in Q3 revenue to Rs 591 Cr with same-store sales growth of 25%.
🟢 MOIL achieves best-ever Q3 performance with 4.6 lakh tonnes output, sales up 13% YoY.
🟢 NMDC reports 5.1% YoY growth in December iron ore production to 4.71 million tonnes.
🟢 NHPC receives Rs 250 Cr insurance payment for Teesta Power Station flood damage.
CORPORATE ACTIONS
🟢 KPI Green Energy sets January 3 as record date for 1:2 bonus share issue.
🟢 Garware Technical Fibres to trade ex-bonus for 4:1 share issue from today.
INDIAN ECONOMY
🟢 Manufacturing PMI hits 12-month low at 56.4 in December, though remains in expansion territory.
🟢 UPI transactions rise 8% to 1,673 crore in December with increased daily average.
GLOBAL
🔴 Tesla reports first annual EV sales drop in over a decade, delivering 1.79 million vehicles in 2024.
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Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This daily update highlights market trends for your awareness. It does not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.