SPA Securities is bearish on Maruti Suzuki India has recommended sell rating on the stock with a target price of Rs 5243 in its research report dated July 30, 2020.
SPA Securities' report on Maruti Suzuki India
Hit by pandemic, Maruti Suzuki reported its first loss making quarter both at operating and net levels and could be considered as a one-off. The management claims demand recovery, but looks unsustainable as discretionary spends majorly depend on how Covid situation evolves, which remains very uncertain.
Outlook
Supply side constraints to pinch more, while margin to remain subdued due to higher fixed cost. Rising competitive intensity, uncertain demand outlook and stretched valuations compel us to recommend ‘Sell’ on Maruti Suzuki stock with a target price of 5,243.
For all recommendations report, click here
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