Rohan Korde, Auto Analyst at Anand Rathi Securities told CNBC-TV18, "In Maruti Suzuki India my target price has been at Rs 1,475. It s based on FY15 earnings where there is not going to be much of a change. We still have not got the capex guidance for FY15, so still maintain the earlier figure; Gujarat anyway is going to come in FY16 onwards. So, there is no major change in earning for FY15 basis that we have right now."
He further added, "We are cautious because we do not see demand coming in. Volumes for example, were on lower base this year, will barely be seeing 1 percent growth and that is too because of two months that they lost in Manesar in FY13. Therefore, if the company is not been able to register volume growth I would be not keen on auto stock which is not growing too much in terms of volume plus the margin expansion story, which was playing last year has already happened."
"I do not see an incremental data from 12-12.5 percent margin that the company is currently showing. So, there is no fundamental reason for me to justify a buy at current levels. We are more interested in looking at it at maybe 10 percent lower level from Rs 1475 because then that would make it a buy. The other stocks that I like at current valuations are Mahindra and Mahindra (M&M), Bajaj Auto and Tata Motors post the correction."
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