Expect Maruti to post strong Q4 results; buy stock with a long-term perspective: Mayuresh Joshi

In a chat with ET Now, Mayuresh Joshi, Fund Manager, Angel Broking, shares his view on Maruti Suzuki's fourth quarter results scheduled for Monday.

ET Now: If Maruti does outperform and give a much better performance, is that enthusiasm enough to buy into the counter? Does the market mood make you believe that a 'BUY' call should be on hold for now even as the rumour mills are suggesting that the PAT numbers will be much better than estimated?

Mayuresh Joshi: Operationally, Maruti should report better numbers for the fourth quarter. It may keep on reporting good set of numbers going ahead. The new launches that Maruti has come up with and the pipeline that it probably has, will ensure that the revenue growth sustains for the carmaker. Hence, the earnings outlook for Maruti over the next year looks quite robust. It has got a well-diversified portfolio. The balance sheet size and the franchise is pretty strong.

The only chink in the armour for all these auto stocks might be how the weather conditions probably pan out. That said, Maruti being predominantly an urban and the semi-urban story, should hold on to its guidance. Hence, earnings growth in excess of 39 per cent is what we are perceiving at our end. At present, valuations do not look stretched. So any probable decline, irrespective of the results, should be taken as an opportunity to buy from a long-term perspective.