Maruti Stock Recommendation by Romesh Tiwari CapitalAim: CMP 7391 / Target 8500
Automobile sector in India is facing tough times and Maruti was one of the automobile majors to announce production cuts. Automobile companies have to adapt to new business environment with EURO 6 norms and development of electric vehicles.
Research notes from Romesh Tiwari, Head of Research, CapitalAim follow.....
A lot of focus is on the Auto sector as it is believed to reflect the status of the economy in general. In the passenger vehicle segment, Maruti is better positioned to capitalize on its vast network and enviable brand value. In recently declared result the profit has declined on a YoY basis but still was better than street expectations, the credit goes to efficient management.
Investors should buy Maruti only on declines for a target of 8500 by next Diwali.