Buy Maruti Suzuki: Prakash Diwan

Prakash Diwan of prakashdiwan.in told CNBC-TV18, "Very clearly, in Maruti Suzuki, the pressure on the margins is what everybody is worried about. The volumes while they are known, at what cost do they come in is always a question, especially when you are in the leadership position and you are not a Royal Enfield, you need to justify that. Secondly, Maruti also has spent a lot money which we are not very clear in terms of how exactly it is paying off. So, the Return of Equity (ROE) have started. So, if you look at the kind of build up towards the margins side, it has been stressful. So, the guidance in terms of how they were looking at revving up of course volumes, but also the profitability is going to be a question. But, it could be 4-5 percent lower in terms of profitability this time around, but I would buy into that because it is a stock that is probably giving you a very short window of opportunity for these three months that it has been lower because of yen issues and things like that, but not because of business issues.""From Rs 4,700 to Rs 3,200 and look at the move back. The Rs 3,200 to Rs 3,800 move has also been quite convincing. People have started getting worried about the fact whether it can scale back to Rs 4,600. Maybe it will pause at about Rs 4,200 and consolidate a bit. Technically also, I believe that is a level that people have been talking about. But, it has got no visible competition which can stop itself from moving into that stage," he said.