Maruti Suzuki stock, so far, corrected more than 26 percent year-to-date.
Maruti Suzuki India stock declined over 3 percent intraday Wednesday after global brokerage firm HSBC slashed target price by 10 percent on likely margin pressure risk.
The research house reduced target price to Rs 9,000 (implying potential upside of 26 percent), from Rs 10,000 earlier while retaining 'buy' call on the stock.
HSBC said changing consumer patterns and slow income growth had an impact on new car demand. Major car markets are already showing signs of stagnation, it added.
Maruti remains strong long-term play, but weak festive season and margin pressures are near-term risk, it feels.
The stock, so far, corrected more than 26 percent year-to-date.
The country's largest car maker had reported a year-on-year fall of 0.5 percent in its sales for September to 1.62 lakh units as subdued demand in the domestic market and weak exports impacted volumes.
Higher fuel cost, product price hikes, increasing interest rates and the on-going shraadh period (considered inauspicious for new purchases among Hindus) hit the company's retail and wholesale sales.
Meanwhile, Maruti's board meeting is scheduled on October 25 to consider the unaudited financial results for the quarter ended on September 2018.
At 13:50 hours IST, the stock was quoting at Rs 6,948.45, down Rs 201.50, or 2.82 percent on the BSE.
