Indian Automobile Industry 2013
Automobile industry facing a tough time as vehicle demand is sluggish. Valuations of companies on the lower end. Autocomponent industry is also expected to witness a flat growth this fiscal because of weak automobile demand. The industry will remain under pressure in the near future because of the high inventory levels with dealers.
As per estimates from Society of Indian Automobile Manufacturers (SIAM), the Indian Automobile Industry’s volume grew by 14% over FY11-FY12. The gross turnover is expected to be around Rs.3 lakh crores in FY12.
Valuation of Automobile Companies
Segment |
FY12 Sales (Units) |
Listed Companies |
EV/EBITDA (ttm) |
EV/Sales (ttm) |
Commercial Vehicles |
902,195 |
Tata Motors |
5.5x |
0.7x |
Mahindra & Mahindra |
7.3x |
0.9x |
||
Passenger Vehicles |
3,125,390 |
Maruti Suzuki India |
14.1x |
1.1x |
Hindustan Motors |
NA |
0.3x |
||
Motorcycles |
11,945,344 |
Hero MotoCorp |
9.7x |
1.5x |
Bajaj Auto |
13.7x |
2.9x |
||
TVS Motor Company |
4.0x |
0.2x |
||
Scooters |
3,525,633 |
LML |
8.2x |
0.1x |
Three Wheelers |
876,127 |
Scooters India |
NA |
0.5x |
Source: Capital IQ; Company Reports; SIAM; SMERGERS Research
Indian Auto Component Industry 2013
As per estimates from Automotive Component Manufacturers Association (ACMA) of India, the Indian Auto component industry grew at 9% over the last year to reach Rs.2.2 lakh crores in FY12. But the industry is expected to witness a flat growth in this fiscal because of weak automobile demand.
Auto Component Industry Segments |
FY12 Share |
Engine Parts |
31% |
Drive Transmission & Steering Parts |
19% |
Body & Chassis |
12% |
Suspension & Breaking Parts |
12% |
Equipment |
10% |
Electrical Parts |
9% |
Others |
7% |
Source: ACMA
Valuation of Auto component companies
Top Listed Companies |
EV/EBITDA (ttm) |
EV/Sales (ttm) |
Motherson Sumi Systems |
13.4x |
1.0x |
Sundaram-Clayton |
2.2x |
0.2x |
Bosch |
18.6x |
3.6x |
Tube Investments of India |
7.9x |
2.2x |
Bharat Forge |
5.4x |
0.9x |
Amtek Auto |
5.7x |
1.5x |
Exide Industries |
14.9x |
2.1x |
Industry Median |
3.6x |
0.4x |
Industry median includes Sundram Fasteners, Mahindra Forgings, Wheels India, Rane Holdings, Asahi India Glass, Amtek India, Sunflag Iron And Steel Company, Munjal Showa, Rico Auto Industries, Dynamatic Technologies, Sona Koyo Steering Systems, Omax Autos, Minda Industries, Subros, Jamna Auto Industries, Gabriel India, Federal-Mogul Goetze, Pricol, Jay Bharat Maruti, Wabco India, Denso India, Banco Products, Lumax Industries, JBM Auto, Steel Strips Wheels, Automotive Axles, Lumax Auto Technologies, Autoline Industries, Ucal Fuel Systems, Munjal Auto Industries, Rane, Hinduja Foundries, Automotive Stampings & Assemblies, Harita Seating Systems, Fiem Industries, Hi-Tech Gears, Alicon Castalloy, Jay Ushin, Bharat Seats, Bharat Gears, Suprajit Engineering, Setco Automotive, Talbros Automotive Components, JMT Auto, Shivam Autotech, Rane Brake, ZF Steering Gear, Rane Engine Valve, Kalyani Forge, Enkei Wheels, India Nippon Electricals, Sundaram Brake, Fairfield Atlas, Clutch Auto, Rasandik Engineering Industries India, Samkrg Pistons and Rings, Precision Pipes and Profiles Co., ANG Industries, Menon Pistons, Machino Plastics, Triton Valves, GS Auto International, Autolite India, Kar Mobiles, Remsons Industries, Lumax Automotive Systems, Saint-Gobain Sekurit India, Raunaq Automotive Components, Menon Bearings, Porwal Auto Components, Kinetic Engineering, Hindustan Composites, IP Rings, Investment & Precision Castings, AUNDE India, Hella India, Schrader Duncan, Hindustan Hardy Spicer, IST, Kew Industries, Coventry Coil-o-Matic Haryana, BCL Forgings, Gujarat Automotive Gears, Jagan, Sibar Auto Parts
End Notes
Source: Analyst Reports, Company Press Releases, Yahoo Finance
FY: Financial Year ending March
All multiples are as on Dec 31st 2012
Conversion Rate: 1 USD = 50 INR
ttm: trailing twelve months, or last twelve months
EBITDA: Earnings Before Interest, Taxes, Depreciation & Amortization - a measure of company’s profitability
EV: Enterprise Value - a measure of company’s worth