Credit Suisse expects Maruti Suzuki India Ltd's Q2 margins to improve Q-o-Q on better product mix and operating leverage; keeps "neutral" rating on carmaker.
No discounts being offered on its new models (New Dzire, Baleno and Brezza) due to waiting periods, hence margins likely to trend up on a q-o-q basis, analysts at Credit Suisse add.
The analysts believe the Indian carmaker could benefit from lower royalty payouts as its share of locally designed models rise.
Co has said it aims to come up with new models for the Indian market every year starting 2019.
Margins from the company's Gujarat plant to improve once it begins powertrain manufacturing there and on full utilisation of the plant; first line will reach full utilisation in Q4 - Credit Suisse.
Out of 49 analysts covering the stock, 35 have rated it "buy" or higher while 13 have a "hold" rating on the stock and one rates it "sell".
Up to Monday's close, Maruti's shares have risen nearly 50 pct this year, compared with an 18 pct increase in the Nifty Auto index.
