Maruti Suzuki shares gain; Bank of America ML says buy

Moneycontrol Bureau

Maruti Suzuki India shares gained one percent in afternoon trade. Bank of America Merrill Lynch has a buy rating on the stock with a target price of Rs 1650.

"Maruti expects one new car launch for 4 successive years. This includes a compact sport utility vehicle (SUV) in FY15. The company is still studying feasibility of entering light commercial vehicle (LCV) business. It will implement its capex of Rs 3,500 crore in FY14 despite current demand slowdown," Bank of America Merrill Lynch report said.

Also Read - Strong petrol-model range will boost sales: Maruti

At 14:30 hours IST, the stock was up 0.96 percent to Rs 1,307.80 on the Bombay Stock Exchange.