India Two Wheeler Sector

Apr 28, 2016 | 11:00 AM IST

Cyclical recovery likely but prefer 4W to play the same. A good monsoon and a pickup in the pace of the economic recovery should augur well for auto volumes. In our view, it is much better to play this recovery through 4W rather than 2W. Not only is the cyclical correction deeper in 4W vs 2W (2% CAGR vs 7% CAGR in the past five years), 4W also have a much higher operating leverage once volumes bounce back....Read More>>

 

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