Maruti Udyog
Recommendation: Hold
Price target: Under review
CMP: Rs 870
- Owning all of MSAILMaruti Udyog Ltd (MUL) would be buying out the entire stake of its joint venture partner, Suzuki Motor Company, Japan (SMC), in Maruti Suzuki Automobile India Ltd (MSAIL) and merging the subsidiary with itself.
- At present, MUL holds a 70% stake in MSAIL whereas SMC holds the remaining 30%. We view MUL’s decision to buy out the entire SMC stake in MSAIL as a big positive for the domestic car major.
Reliance Industries
Recommendation: Buy
Price target: Rs 870
CMP: Rs 847
- I had mentioned earlier that the forthcoming initial public offering of its subsidiary Reliance Petroleum will add an upside of approximately Rs75 per share to RIL’s value.
- The recent stake sale by RIL to global oil and gas major Chevron just vindicates our view.
