Fundamental Analysis Report – Nifty Auto Index

Index Overview

The Nifty Auto Index tracks India’s leading automobile and auto-ancillary companies across passenger vehicles (PV), two-wheelers (2W), commercial vehicles (CV), tractors, and components. Key drivers include domestic income & credit cycles, festive-season demand, commodity inputs (steel, aluminium, rubber), fuel prices, emission/safety regulations, export markets, and policy incentives (PLI, FAME).

Institutional Holdings & Fund Activity

FIIs: Tilt toward scale OEMs with strong export pipelines and robust return profiles; rotate tactically with USD and global demand.
DIIs: Systematic allocations via large-cap and thematic funds; preference for leaders with pricing power and clean balance sheets.
Impact: Supportive liquidity backdrop; valuations sensitive to volume guidance and input-cost curves.

Financial Health Snapshot (Sector Averages)

Leverage: Low-to-moderate; most OEMs net-cash or comfortably levered, ancillaries vary by capex cycle.
Margins: EBITDA margins driven by operating leverage, mix (premiumisation, exports), and commodity pass-through.
Cash Flow: Healthy OCF/FCF for leaders; disciplined capex in EVs, safety/BS norms, and platform refreshes.
Risks: Commodity spikes, regulatory changes (emission/safety), weak monsoon (tractor/2W), and export softness.

Valuation Check

Current Valuation: Premium multiples for dominant franchises; wider dispersion across mid-cap ancillaries. Tone: Neutral-to-Positive with selectivity; cautious into commodity spikes and weak rural prints.
Drivers: Festive demand, input-cost cycle, product launches, and EV adoption curve.

Top & Bottom Performers in Nifty Auto Index (Illustrative Financials)

Note: Figures below are structured placeholders; replace with the latest reported numbers before publication.

Company	Revenue (₹ Cr)	Net Profit (₹ Cr)	Gross EBITDA (₹ Cr)	Net EBITDA (₹ Cr)	Operating Expenses (₹ Cr)	Performance Rank
Maruti Suzuki	130,000	12,000	18,000	17,200	112,800	Top Performer 1
Tata Motors (Auto)	110,000	8,500	15,500	14,800	94,500	Top Performer 2
Mahindra & Mahindra	90,000	10,500	14,000	13,400	76,000	Top Performer 3
Bajaj Auto	44,000	8,000	9,600	9,200	34,800	Top Performer 4
Eicher Motors (RE)	16,500	3,800	4,800	4,600	11,700	Top Performer 5
Hero MotoCorp	34,000	3,000	5,500	5,200	28,800	Bottom Perf. 1
TVS Motor	34,500	2,900	5,200	5,000	29,300	Bottom Perf. 2
Ashok Leyland	38,000	2,500	4,800	4,500	33,200	Bottom Perf. 3
Bosch India	14,000	1,900	2,700	2,600	11,300	Bottom Perf. 4
Motherson	95,000	2,800	7,800	7,400	87,200	Bottom Perf. 5

Market Timing Insight – Nifty MidSmall Healthcare Index

Put–Call Ratio (PCR) readings are elevated, signalling short-term froth/overbought conditions. Prefer staggered entries on pullbacks rather than lump-sum buys.
Short-term: Avoid chasing breakouts; wait for mean reversion.
Medium-term: Use 5–8% dips to build positions in profitable, low-debt, export-ready names.
Long-term: Structural demand intact; maintain watchlist to deploy on broader market corrections.

Investment Strategies

Short-Term (1–3 months): Trade around monthly SIAM/FADA prints, commodity moves, and festive-season launch pipelines. Prefer liquid leaders; use tight stops due to valuation sensitivity and input-volatility.

Mid-Term (6–12 months): Accumulate leaders on dips if input-cost tailwinds hold and demand remains resilient. Blend PV/two-wheeler franchises with select CV and high-quality ancillaries for diversification.

Long-Term (3–5 years): Core allocation to scale OEMs with strong brands, efficient cost structures, and credible EV roadmaps. Track capex intensity, product-cycle cadence, and export mix expansion.

Key Technical Levels – Nifty Auto Index

Time Frame	Critical Support Levels	Critical Resistance Levels
Short-Term (1–3 M)	29,500 / 29,000	30,800 / 31,300
Mid-Term (6–12 M)	28,200 / 27,500	32,200 / 33,000
Long-Term (3–5 Y)	26,000 / 24,800	34,500 / 36,000

Upcoming Important Events (Next 3 Months – Auto)

• Monthly (1st week): SIAM wholesale dispatches by segment; FADA retail sales print mid-month.
• Sept–Nov 2025: Festive season (Navratri/Diwali) – launches, promotions, and inventory restocking.
• Monthly: Commodity watch – steel, aluminium, rubber; fuel price adjustments impacting demand mix.
• Quarterly (Oct–Nov 2025): Q2 FY26 earnings (margins, pricing, demand commentary, EV roadmap).

Policy watch: PLI Auto/ACC milestones; emission/safety regulation updates; scrappage policy execution.

📌 Disclaimer – aiTrendview.com

This report has been prepared by aiTrendview.com for informational and educational purposes only. The information, data, and analysis presented herein are based on publicly available sources, believed to be reliable, but aiTrendview.com makes no representation or warranty, express or implied, as to their accuracy, completeness, or timeliness.

This report does not constitute investment, trading, or financial advice and should not be construed as a recommendation to buy, sell, or hold any security, asset, or instrument. All investments involve risks, including possible loss of principal. Past performance is not indicative of future results.

Readers are advised to conduct their own independent research or consult with a licensed financial advisor before making any investment decisions. aiTrendview.com, its affiliates, employees, or partners shall not be held liable for any direct, indirect, incidental, or consequential losses arising from the use of this report or any information contained herein.

• By accessing and using this report, you agree to this disclaimer in full.