Citigroup maintains 'buy' rating on Maruti Suzuki

Citigroup has maintained a 'Buy' rating on Maruti Suzuki with a price target of Rs 1,654.

Maruti Suzuki has proposed the merger of Suzuki Powertrain India (SPIL) with itself, by acquiring Suzuki’s 70% stake in SPIL.

SPIL is the entity from which Maruti sources its diesel engines.

This development is neutral with a slightly positive bias, as it is earnings-accretive, and the transaction multiple is not too expensive.