9/9/2023 0 Comments History of hero honda companyA key factor behind the creditable progress of this industry has been the operation of several international joint ventures (IJVs) such as Kawasaki Bajaj, TVS Suzuki, Kinetic Honda and Hero Honda. India has now emerged as a global leader in two-wheeler production and trade. During these eventful years, it has experienced great advancements in technology, tremendous increments in production volume and opening up of the market for global trade. The Indian two-wheeler industry has undergone a long journey since its humble beginning in the late 1940s. Based on this data, projections are made for the company and accordingly 3 cases of valuation using Residual Income valuation model to evaluate the attractiveness of the investment. Once an under-valued stock is identified, the paper studies the company?s prospects, cause for undervaluation and comparison of financial performance with its peers. A fundamental approach is taken while studying the financial performance as opposed to a technical approach. On finding the most attractive sub-industry, a comparative analysis is performed on the major stocks in the given space to look for under-valued stock(s) in the given industry while staying wary of value traps. This paper examines 2-wheelers, passenger vehicles and auto-ancillary sub-industries to identify the most attractive sectors. This paper follows a top down approach to find investment opportunities in the publicly traded equities from the automobile sector. Between the facts that India is one of the fastest growing economies in the G20 and India?s under-developed public transportation system, the industry is expected to grow rapidly and offer multiple investment opportunities in both the private and public markets. The Indian automobile sector contributes to 7.1% of the Gross Domestic Product (GDP).
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |