Sharekhan recommended hold rating on Maruti Suzuki with a target price of Rs 7500 in its research report dated October 24, 2019.
Sharekhan's research report on Maruti Suzuki
Q2FY20 results were ahead of estimates due to better than expected operating margins, higher other income and lower tax. Demand headwinds to sustain in near term due to slower economic growth and increased cost of ownership; expect muted 2% earnings CAGR over FY2019-2021. Stock is trading at rich valuations of 29xFY21 earnings; thus leaving limited scope of upside from current levels.
We retain Hold rating on Maruti Suzuki India Ltd (MSIL) with a revised PT of Rs 7,500.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.