May 11, 2013, 04.45 PM | Source: CNBC-TV18
PN Vijay, Portfolio Manager is of the view that one can add Maruti Suzuki at every dip and the stock can touch Rs 2000 in the next 12 months.
PN Vijay (more)
Portfolio Manager, askpnvijay.com | Capital Expertise: Equity - Fundamental ,IPO
He further added, “These are all material sensitive companies. The raw material to sales price is almost 70 percent in automobile companies. Reckoning, they (Maruti) have been very successful in their new models. If you look at the way Tata Motors has just come off in India as compared to Maruti, the success story of Maruti is its ability to understand the market and bring out new models.”
“On a longer term, the catching up of petrol six months back, the diesel prices were about 55-60 percent of petrol prices. Today, they are 78-80 percent. So we are catching up one through petrol prices falling and diesel prices going up. Maruti as you know is king in the petrol driven cars. So all this is working in Maruti’s favour.”
“Today, if you saw the automobile industry, it is at 20 months low. The two wheelers are in trouble. So if anybody wants an exposure to auto, Maruti is about the best. Even at this higher level, at every decline, I would advice investors to add a little bit of Maruti. We should touch Rs 2,000 in Maruti in the next 12 months.”
There should not be any abrupt changes in policies
According to Sudarshan Sukhani of s2analytics.com,
The first phase of the plant with a capacity of 2.
Gaurav Bissa of LKP Securities is of the view that