We remain positive on Maruti Suzuki, considering multi-year favourable product lifecycle and improvement in product mix (increasing share of premium products) aiding realisations and consequently margins.
It also has reducing yen exposure and lower capex intensity with improvement in free cash flow conversion and high FCF generation and sharp improvement in return on invested capital.
We have a buy rating on the stock with target of Rs 10,685 per share.
Disclaimer: The author is Vice President - Equity Advisory at Motilal Oswal. The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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