More brokerages downgrade reeling Maruti Suzuki

The brokerage expects production at Maruti's Manesar plant -- the site of recent deadly clashes between workers and management -- to remain disrupted for longer than market consensus.

"We expect MSIL stock to remain weak in the near-term due to uncertainty over production resumption at Manesar. We recommend investors to wait for more clarity on the labour issue before buying the stock," Macquarie says.

Meanwhile, HSBC cuts its target price on Maruti Suzuki to Rs 1,200 from Rs 1,650, saying the Manesar disruptions come during a period when the auto maker already faces a weakening rupee and a slowdown in the car industry.

Maruti Suzuki on Saturday lagged estimates with a 23% fall in fiscal first-quarter profit, as a weak local rupee currency pushed up costs.

Maruti shares are up 0.3% at Rs 1116.50, under-performing the 1.7% gain in Nifty.

Maruti shares are down 9.3% as of Friday's close since it announced the shutdown of Manesar plant on July 18, way under-performing the NSE's auto index's 3.3% fall during the same period.