Buy Maruti Suzuki, target of Rs 1075: PINC

PINC Research has maintained its buy rating on Maruti Suzuki India with a revised price target of Rs 1075 in its May 6, 2008 research report. "Maruti Suzuki India, MSL net sales rose by only 7.5% YoY to Rs 47.6 billion due to a onetime compensation of Rs 545 million to dealers for reduction in excise duty. While volumes were higher by 1% YoY to 202k units, realisations improved by 6.4% to Rs236k/unit due to a richer product-mix."

"MSL is an attractive play on the growing car market with its models placed favorably on the price-value matrix supported by a strong dealer and service network. Also, the cost of ownership continues to be lower and resale value higher for MSL’s models. We expect growth backed by new launches and surge in exports. Hence, we reiterate our ‘BUY’ recommendation with a revised price target of Rs 1075, says PINC's research report.

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