Prefer Maruti Suzuki: Lalit Thakkar

Prefer Maruti Suzuki in the auto segment, says Lalit Thakkar from Angel Broking.

Thakkar told CNBC-TV18, "In the auto segments I am tracking Maruti Suzuki especially given the fact that usually I like to go for the businesses where I am not worried about margins coming down. M&M operates into this tractor segment and they are the leader. They can probably sustain higher margins but still I think their margins are little bit higher from the historical levels. Similar is the case of Tata Motors. If you look at their global operations the margins are around probably 12 or 13 and the global competitors are not running that much margins, so that is the reason both the stocks are slightly expensive." He further added, "If you value this business on normal EBITDA margin and in contrast if I see Maruti it is hardly trading at market cap to sales of 0.6 where the other players are trading at one time. In case of Maruti the operating margins are around 10% so in this space we like Maruti at this juncture."