Recommendation: Buy
CMP = Rs 990
CMP = Rs 990
Price target: Rs 1,230
Key Points:
- Maruti Suzuki India Ltd (MSL) has outperformed the passenger vehicle segment in the current year due to the success of its new products. The new managing director (MD), Shinzo Nakanishi, aims to stay focused on the goal of achieving one million sales by 2010. This translates into a compounded annual growth of 14-14.5% in sales which is achievable.
- MSL is ready to play a greater role in Suzuki Motor Corporation's (SMC) global operations with increasing focus and investments in new product development.
- The new MD has reiterated that the current profit margins are not sustainable.
- I maintan strong positive outlook on this stock and recommend Buy call at target price of Rs 1,230 over next 6 months time frame.
Be a better friend, newshound, and know-it-all with Yahoo! Mobile. Try it now.
