Positive on Maruti Suzuki; use any correction to buy into the counter: Deven Choksey

In a chat with ET Now, Deven Choksey, MD, K R Choksey Securities, shares his view on what can investors expects from Maruti Suzuki’s June quarter earnings.

ET Now: What can one expect from Maruti does it seem like the stock price and the kind of up move that one has seen would be justified by the numbers today?

Deven Choksey: I not too sure about whether the price would justify amid the negative mood in the market today despite a couple of good results. So the unfortunate part would be that ahead of results the event would have got discounted in the price.

To my mind, if you look at the fundamentals of the company, I find that there are enough opportunities for one to remain excited about this particular company.

The way in which the company is positioning its premium brands with a separate distribution network that it is creating, is a way forward. The leader always leads and that is where Maruti is showing the difference. The company could possibly show reasonably good amount of growth in the ongoing financial year itself. So, I would probably factor in a situation wherein, on the one hand, you have the interest rate coming down and, on the other, the demand pick up is being seeing in the passenger vehicle segment.

At the same time, some of the premium products which are coming up. I would think that the company would be in a sweet spot, going forward. Certainly, it would be a buy opportunity for some reason as far as investment for long term is concerned, if the market gives it a correction.