Maruti Suzuki valuations a bit stretched; but stock remains a safe bet in auto space: Hemang Jani

In a chat with ET Now, Hemang Jani, Senior VP, Sharekhan, shares his view on Maruti Suzuki.

ET Now: What is your view on Maruti Suzuki? Should one start taking profits or is the ride going to be smooth from here onwards because the stock has been on a tizzy?

Hemang Jani: Maruti Suzuki is among the best performing stocks in the auto space. Looking at the urban consumption theme that is going to be played out, there are very few companies where one can have a strong earnings visibility, with a decent improvement in the operating profit margins.

Maruti Suzuki has run up a bit and in terms of valuations, it looks a bit stretched. But given the fact that everybody has his own set of problems, be it Tata Motors or two wheeler companies, Maruti looks like a safe bet. People would want to chase it even as the valuations are little on a higher side.

ET Now: Would you continue like that stock?

Hemang Jani: Absolutely.