Sharekhan is recommended hold rating on Maruti Suzuki India with a target price of Rs 5500 in its research report dated May 13, 2020.
Sharekhan's research report on Maruti Suzuki India
Maruti Q4FY20 results were lower than our as well as street estimates as lower capacity utilisation and higher discounting led to miss on margins. Demand is expected to remain under pressure in near term due to weak consumer sentiment due to COVID-19. Demand recovery would take time as pick-up in economic activity and consumer sentiment would be gradual. Valuations at 23.5x FY2022 earnings are at higher end of long-term historical average.
We retain Hold rating on the stock with unchanged PT of Rs 5,500.
For all recommendations report, click here
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