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BUZZ-Maruti Suzuki India near-term outlook positive - Credit Suisse
September 26, 2017 / 6:51 AM / 3 months ago

BUZZ-Maruti Suzuki India near-term outlook positive - Credit Suisse

** Credit Suisse expects Maruti Suzuki India Ltd’s Q2 margins to improve Q-o-Q on better product mix and operating leverage; keeps “neutral” rating on carmaker

** No discounts being offered on its new models (New Dzire, Baleno and Brezza) due to waiting periods, hence margins likely to trend up on a q-o-q basis, analysts at Credit Suisse add

** The analysts believe the Indian carmaker could benefit from lower royalty payouts as its share of locally designed models rise

** Co has said it aims to come up with new models for the Indian market every year starting 2019

** Margins from the company’s Gujarat plant to improve once it begins powertrain manufacturing there and on full utilisation of the plant; first line will reach full utilisation in Q4 - Credit Suisse

** Out of 49 analysts covering the stock, 35 have rated it “buy” or higher while 13 have a “hold” rating on the stock and one rates it “sell”

** Up to Monday’s close, Maruti’s shares have risen nearly 50 pct this year, compared with an 18 pct increase in the Nifty Auto index

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