Buy Maruti at dips: Rajan Malik, MF Global

Rajan Malik, Head Equities, Private Client Group, MF Global, in a chat with ET Now, gives his stock recommendations


What did you make of some of the result disappointments, Maruti for example and does it seem like the poor performance is something that the stock market is already priced in because we have seen Maruti take a hit in the last couple of trades?

Maruti has underperformed and it was very clear that they would have a poor quarter based on what happened at Manesar and due to the yen appreciation. What we have got to see now is what are the relative valuations of Maruti, Tata Motors or a Mahindra. Although they are all in different segments per se but Maruti continues to be a very strong story. So we cannot write it off like that. They have got a Swift Diesel which is still commanding a very strong premium, they have got competition in the other segments but it continues to be a leader. Given the price, valuations will become attractive and Maruti would be a buy at maybe 5% to 6% lower values than the current values should it go down based on the results for one quarter.