Buy Maruti Suzuki target Rs 8,824: Nomura
Nomura has a buy call on Maruti Suzuki with a target price of Rs 8,824.
The current market price of Maruti Suzuki is Rs 7222.6.
Nomura suggests buy on Maruti Suzuki after shifting target price from Rs 7,412 to Rs 8,824, implying nearly 23 per cent upside.
India’s car industry appears to have significant growth potential; we think it can reach nearly 15mn units by FY30F, which is nearly 60 per cent of China at similar per-capita income levels.
Maruti Suzuki (MSIL), with nearly 50 per cent market share, is a key stock to play this theme and remains our top pick in the sector.
MSIL & Suzuki (7269 JP, Buy) have focused on investing more in India for the longer term.
With the R&D center scaling up in India and plans to double capacity and network in the medium term, competition seems to have been left behind.
We estimate volumes at nearly 13 per cent CAGR in FY17-19F, largely in line with the industry, to which there could be upside given the success of new models and strong model cycle.
MSIL’s new launches have met with much success, with a waiting period of nearly 3-4 months for the new Dzire (depending on the variant), nearly 4.5 months for Baleno, 5 months for Brezza and nearly 1 month for Ignis.
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Via:: Economic Times – Stocks