Advertisement

BW Businessworld

Kotak Downgrades Maruti Suzuki To 'Sell'

Kotak Institutional Equities downgraded Maruti Suzuki India Ltd to "sell" from "reduce," saying the outlook for the company will be more challenging than currently priced by the stock.

Kotak notes Maruti Suzuki shares are factoring in expectations for a "sharp recovery" in volumes in fiscal year 2015 but says the year could instead be challenging because of "high inflation and weak job market conditions."

"We are also concerned on low capacity utilization levels of the industry and strong competitor launches, which will restrict operating margin improvement," Kotak adds.

Kotak is only one of five brokerages out of 54 tracked by Thomson Reuters to rate Maruti Suzuki at "reduce", "underweight", or "sell."

Maruti shares are up 19.7 per cent so far this year, after hitting a record high on 20 December. Its shares were down 0.9 per cent at 10.25 am.

(Reuters)
 


Tags assigned to this article:
inflation maruti suzuki news 4 markets kotak job market

sentifi.com

Top themes and market attention on:


Advertisement