Maruti will continue to languish at lower levels: Apurva Shah

In a chat with ET Now, Apurva Shah, VP & Head Institutional Research, Prabhudas Lilladher, talks about Maruti .

ET Now: Suzuki has slashed the sales forecast for Maruti this year from about 13% to just about 8%. At current levels of sub Rs 1100, is all the bad news now built in?

Apurva Shah: It looks like a lot of the current bad news is certainly built into the price but given what is happening on the auto side, especially on the four wheelers. I would not be very sure whether this is the absolute bottom for Maruti or not. Even if it is close to the bottom, probably the stock will continue to languish at lower levels because the outlook is really not looking good at all for the four wheeler space. We have been doing a lot of channel checks and the news is not good at all over there. In fact over the next few months, you could see the numbers coming in quite bad for all the four wheelers.