We expect near term sector performance to remain muted driven by an unfavorable environment, liquidity concerns, stressed balance sheets, defaults in the system, high inventory levels, high investor involvement, weakening demand and the overhang of elections.
Mumbai - Sales volumes show signs of softening after 2 successive quarters of improvement. Inventory months remain elevated (~42 months). Given the uncertain environement and high inventory levels, we expect a ~10% cut in prices in FY14.
Delhi NCR - Sales volumes fall sequentially due to seasonality, stable on a YoY basis. Inventory levels continue to be elevated (~41 months) Price - volume equation likely to remain subdued in face of
upcoming elections. Expect a 10% softening in prices in FY14
Bengaluru - Sales volumes improve sequential ly and reverse decl ining trend noticed for the past 3 quarters.Inventory levels (~31 months) have picked up sharply during the quarter led by strong launches during the quarter. Accordingly, we expect a ~5% price cut in FY14.
Chennai - Volumes fall marginally on a sequential basis. Market remains stable. Inventory levels have
increased sharply (44 Months). We expect launch momentum to ease and volumes to stabil ise at sl ightly lower levels. Buyer incentives may come in.
Pune - Volumes fall sequentailly and are weak on a YoY basis as well. Inventories (~21 months) have built up fol lowing successive quarters of launches exceeding sales volumes. A stable volume market where launches have outstripped absorption capacity. Inventory overhang to take a year to clear.
Hyderabad - Resolution of Telengana issue wi l l provide a boost to prices and volumes.
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