PN Vijay, portfolio manager, askpnvijay.com advises to buy Maruti Suzuki at current levels.
Vijay told CNBC-TV18, “Maruti Suzuki is a strong buy at these levels. In fact it stands out as perhaps the best auto stock. The reasons are two-fold, the one is the Bank of Japan (BoJ) is doing a calculated depreciation of the Yen, for the last one month and it just announced another fresh bout of weakening the Yen to make Japanese exports more competitive, to attract investments into Japan and really spur that moribund economy and since Maruti invoices a lot of its imports and many of its products are really Completely Knocked Down (CKDs) – that should have a very good impact because most of it sells is in Indian rupees and US dollars.”
He further added, “Generally if you saw the last month sales – Maruti Suzuki is about the only company that is bucking the trend and if you took the view that Maruti is about the only listed company whose fortunes swing with consumption in the economy and the others swing more with the investment, industrial production and agriculture in the economy. This again lead one to the conclusion Maruti Suzuki is a strong buy. The management is good etc. So, Maruti at about Rs 1,400 or Rs 1,410 level is quite a strong buy in my view.”