INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Shares of Maruti Suzuki declined over 3 per cent early Friday, a day after the carmaker posted its first profit drop in 18
quarters.
The company reported a decline of 10 per cent in net profit for the September quarter on lower demand, higher promotional expenses
and currency woes.
The stock was 0.82 per cent down at Rs 6,669.80 at 10.10 am
The benchmark Sensex fell 0.69 per cent to 33,456
The company sees adverse foreign exchange and rising commodity prices, but is confident of its product portfolio
Financial firm Morgan Stanley has an 'overweight' view on the stock, with a target price of Rs 8,725
The brokerage said the management of the company maintained its FY19 outlook and acknowledges near-term headwinds.
Brokerage firm Phillip
Capital has a buy call on Maruti Suzuki
However, it cut the target price to Rs 8,000, from Rs 10,500 earlier.
"While the quarter was largely in line, the outlook seems volatile
We keenly look at how demand shapes up in the run-up to Diwali
If demand fails to pick up, bloated inventory at the dealers' end would mean a significant increase in discounts, which would impact already
pressurised margins," Phillip Capital said in a report
