Buy Maruti Suzuki India Ltd with a target at Rs 6,000: Tushar Pendharkar

Tushar Pendharkar, Equity Strategist at Right Horizons Financial Services, says a decent rate cut could help the company to achieve strong double-digit YoY volume growth.

Drop in rates will reduce the cost of ownership of passenger vehicle (PV), which would help Maruti Suzuki India Ltd to attract the customers.

Maruti is the largest player in Indian market which makes affordable cars for Indian middle class. Thus, a decent rate cut could help the company to achieve strong double-digit YoY volume growth.

Strong volume growth coupled with operating leverage and reduced discounts could increase profitability in FY17