If one study the market or sale of units in last three quarters Maruti and Huyndai are only two companies which increase the market share and most other has lost the market share during the Covid first wave and second wave which will help the company to get revenue . Avergae they increase the price to 2 to 4 % and if we increase the the average 3% price hike there would be around 15% increase in the EBITA margins . which will give a long runway to the company .
Negatives :
- Rise cost of steel can skew the margin for next couple of quarters .
- Cost of employee per unit vehical increased.
positives
- Company buying land at prime locations .
- Entry level car segment has dominance by the company .
- Strong cash sitting in balance sheet .
Disc : invested earlier but now company is in watch list . This is not any recommendation to buy or sale