Regional liquor players better placed amid price hikes: Dipan Mehta
"One big concern with Maruti is this particular absence of a coherent, I would say, or very aggressive EV strategy and second part with Maruti is the fact that the freshness of the models is gone," says
Dipan Mehta
, Director, Elixir Equities.
Help us with your take on this news flow because yes, it is not just
Maruti Suzuki
which is now being vocal or some reports are suggesting that the production could take a hit, but some of the other major OEMs have been showing concern regarding this. But along with that we also have that global news flow where between US and China the trade deal respected to the rare earth is through. Do you believe for the auto majors it could be a serious issue in the near term, but someone should look at the bigger picture? Give us your sense on this whole news flow.
Dipan Mehta:
See, it is certainly going to have a temporary effect but that is more restricted to the EVs and not so much to the ICE vehicles. It was a
semiconductor supply chain
which was getting more and more difficult for the entire auto Oem global.
So, it is going to have some temporary effect but the bigger picture here for Maruti per se and for a record we have a sizable investment from our perspective at least in our portfolios on
Maruti Suzuki
and we are getting increasingly cautious and concern because for one the company is well behind the curve when it comes to new electric vehicles. Mahindra & Mahindra clearly has the lead as do a lot of the other Chinese companies operating in India and they are gaining
market share
in a significant way.
Right now, it may appear to be small, but Maruti lost three percentage point market share in the last 12 months or so and that could turn out to be even more sharper as more and more EVs come into play. So, one big concern with Maruti is this particular absence of a coherent, I would say, or very aggressive EV strategy and second part with Maruti is the fact that the freshness of the models is gone.
See, Maruti did very well for last two-three years because of many new models coming in, but now the lineup is not as exciting as it was looking at two-three years ago or so and there is far more competition. So, I am getting a bit cautious on Maruti. I have not thrown in the towel as yet, but within the auto space there are two companies which come to mind, usual disclosure we and our clients are invested, one is, of course, M&M which should do very well, even the tractor division should do very well because of better monsoon and last month numbers also were good and second, of course, is
Eicher Motors
. Both these companies if you track, the volume figures monthly, you will be quite impressed on the progress which they are making.
Live Events
Help us with your take on this whole news flow. It has been a steep hike in terms of the prices. The volumes are expected to take a hit. But like Karan was highlighting, two segments particularly can have an impact be it the low prestige segment and the luxury segment. Which segment do you believe can have the most hit with respect to this news flow and what implications can it have on the volumes?
Dipan Mehta:
I think Karan summarised it pretty well and basically, all I can add over here is that in our assessment of the alcobev industry, it is better to be with the regional players, the likes of
Radico Khaitan
or Allied Blenders. Of course,
Allied Blenders
is not a regional player. It is India's largest alcohol company in terms of volume. But there are other smaller players as well, Piccadily comes to mind, Som Distilleries.
We have to work in this industry through these regional players. They are able to manage the regulatory environment quite well. But there is, of course, the risk that a particular state in which they have a high sales concentration, may increase the levy of taxes. But on the whole, see, eventually these things do get absorbed and there could be a dip in volumes for the next 6 to 12 months or so and effect could come on the company's corporate profitability as well.
But these are great long-term secular growth stories. And if you buy them when the chips are down, when the cycle is down, then when the demand revives, these companies tend to have a super increase in their profitability as we have seen in the past. So, it is a sector we like to be overweight in. But I think let us just see the impact of this play out for the next couple of quarters or so.
ETMarkets WhatsApp channel
)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
34 minutes ago
- Time of India
After failed listing attempts in the US and UK, China's Shein to file confidentially for Hong Kong IPO: What makes this a rare move for Chinese company
Shein, the China-founded fast-fashion giant, is reportedly set to file a draft prospectus confidentially for an initial public offering (IPO) in Hong Kong, potentially as early as this week, according to a report in Reuters that quotes three sources familiar with the matter. The move, as per Reuters exclusive report, could make Shein one of the largest IPOs in Hong Kong this year. The IPO also reportedly marks a rare departure from the city's norm of public IPO filings and follows Shein's failed listing attempts in the U.S. and London. What is confidential IPO filing The confidential filing, expected by Monday (June 30), would allow Shein to shield sensitive financial and operational details during the regulatory review process, a practice more common in the U.S. than in Hong Kong. This approach requires a waiver from the Hong Kong stock exchange's standard listing rules, which typically mandate public disclosure of IPO documents. The exchange may grant such exemptions for secondary listings or spinoffs from companies listed on recognized overseas exchanges like the NYSE or Nasdaq. Shein, however, is pursuing a primary listing, making the confidential approach unusual for the city, where high-profile IPOs like Xiaomi and Meituan involved public filings. Shein, valued at $66 billion in its 2023 pre-IPO fundraising round, must secure approval from the China Securities Regulatory Commission (CSRC) before proceeding with the Hong Kong IPO . The company will need to file with the CSRC within three days of submitting its Hong Kong application, in line with Chinese regulations for offshore listings. It remains unclear whether Shein has received preliminary approval from the CSRC. The Hong Kong stock exchange and Shein declined to comment, and the CSRC did not respond to inquiries. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like USDJPY đang đi lên không? IC Markets Đăng ký Undo How Shein has been impacted by the US-China trade war The filing comes as Shein navigates challenges from the U.S.-China trade war, with new U.S. tariffs on Chinese goods and the end of duty-free treatment for e-commerce parcels impacting its largest market. Shein, which sells low-cost apparel like $5 dresses and $10 jeans in 150 countries, shifted its headquarters to Singapore in 2022 but relies on a network of 7,000 Chinese suppliers, subjecting it to Beijing's IPO oversight. The company has also faced allegations of forced labor in its supply chain, which it denies, stating it prohibits suppliers from using Chinese cotton in U.S.-bound products. When Shein's attempt to list in the New York exchange failed Shein's pivot to Hong Kong follows an unsuccessful bid to list in the U.S. in late 2023. The company filed for a New York IPO but failed to secure CSRC approval, Reuters previously reported. The attempt was further complicated by U.S. regulatory scrutiny and trade tensions, including accusations from lawmakers and activists that Shein's supply chain involves forced labor in Xinjiang, a claim the company has rejected. The U.S. ban on imports linked to forced labor added pressure, and Shein's valuation dropped by a third from 2022 to 2023 amid these challenges. After the U.S. listing stalled, Shein explored a London IPO but was unable to gain Chinese regulatory approval, prompting the shift to Hong Kong as a more viable listing venue. A successful Hong Kong IPO could bolster the city's status as a global fundraising hub, which saw $12.8 billion in IPOs and secondary listings in the first half of 2025. Shein's listing, however, hinges on navigating regulatory hurdles and addressing concerns about its supply chain and the impact of U.S. tariffs, which could influence its final valuation. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hindustan Times
an hour ago
- Hindustan Times
Renault Triber facelift spotted again, reveals key updates. Know more
The Renault Triber facelift is expected to launch later this year with some cosmetic updates and new features, but powertrains are expected to remain unchanged. (Image: YouTube/Shankar) Check Offers Renault Triber is one of the key models from the French auto giant in the Indian passenger vehicle market. The MPV comes as one of the most affordable models in its segment, where Maruti Suzuki, Kia, and Toyota have their respective products in the form of Ertiga, Carens and Rumion. The Renault Triber is now gearing up for a mid-life facelift that is long due. This is going to be the most significant update for the MPV since its launch in 2019. One of the key USP of the Triber is its affordable pricing. Expect Renault to continue with that strategy even with the facelifted model, which is expected to launch later this year. The prototype of the Renault Triber facelift has been spotted on the road previously. Now again, a test mule of the upcoming updated version of the MPV has been spotted in Chennai, giving us an idea of the changes. As it seems, the Renault Triber MPV will come with a plethora of cosmetic changes on the exterior. Also Read : Upcoming cars in India The Renault Triber facelift will come with more rounded design elements, while the headlamp cluster will get a revised layout. There will be a new eyebrow-like LED daytime running light (DRL) integrated into the headlamps. The front grille gets a major makeover. Expect the front bumper too to receive some changes. Among other changes, wheel design and rear profile are expected to receive a makeover. An LED strip connecting the taillights is expected to be there. The interior of the test mule was not visible. However, expect the cabin to receive some key updates, which would include a redesigned dashboard and centre console. The Renault Triber facelift would retain its seven-seater configuration. Some feature additions could be there as well, adding more zing to the MPV. While the exterior and interior changes are expected to ramp up the appeal of Triber, on the powertrain front, it is unlikely to receive any update. In that case, the facelifted Renault Triber will continue with the 1.0-litre naturally aspirated petrol engine, which is capable of churning out 71 bhp pea power and 96 Nm of maximum torque. Earlier this year, the MPV received a petrol-CNG bi-fuel variant as well, which would be retained in the facelifted model. Transmission choices include a five-speed manual gearbox and a five-speed AMT unit, which would be retained as well. Check out Upcoming Cars in India 2024, Best SUVs in India. First Published Date: 29 Jun 2025, 11:47 AM IST
Time of India
2 hours ago
- Time of India
Indonesia begins $5.9 bn EV battery project despite environment fears
Indonesia broke ground Sunday on a $5.9 billion megaproject for EV battery production backed by Chinese giant CATL, despite NGOs raising concerns over a lack of environmental guarantees. Indonesia is the world's largest nickel producer and it is trying to capitalise on its vast reserves, with a 2020 export ban spurring a domestic industrial boom of the key metal used in EV batteries and stainless steel. The EV battery project will include a $4.7 billion investment on the eastern island of Halmahera and a $1.2 billion investment in West Java, energy minister Bahlil Lahadalia said in a speech alongside President Prabowo Subianto. "According to my calculation, it won't take long, in probably between five to six years we will be able to reach energy self-sufficiency," Prabowo said at a groundbreaking ceremony in Karawang, West Java. Bahlil said the Halmahera complex will focus on mining, smelting and production of cathodes which are a key component in rechargeable batteries. The West Java complex will focus on battery cell production, the minister said. The two politicians did not say when the megaproject was slated to be operational, but Indonesian officials have said a CATL plant in Halmahera would open in March next year. Alongside CATL, the Halmahera complex is backed by China's Zhejiang Huayou Cobalt and Indonesia's state-owned Antam. Climate Rights International (CRI) and Greenpeace Indonesia this week issued a call for greater assurances from Jakarta that measures were in place to protect the surrounding environment at the bigger complex in eastern Halmahera. Environmental group Mining Advocacy Network (Jatam) said in a statement Saturday that Jakarta was "chasing vague economic growth while consciously ignoring the people's scream" to end damage to the environment and residents' livelihoods. Halmahera, a once-pristine island in the Maluku archipelago, has seen environmental damage increase as operations have grown at a large industrial park that hosts the world's largest nickel mine. A CRI report this month warned the Indonesian government was allowing environmental damage to go unchecked around the Weda Bay mine and the industrial park that hosts it. An AFP report last month detailed how the home of the nomadic Hongana Manyawa tribe was being eaten away by mining operations there.
