Wait and watch for maruti: Prashastha Seth, IIFL Wealth

Prashastha Seth, Senior Fund Manager, IIFL Wealth, In a chat with ET Now, gives his views on Maruti Suzuki


Maruti Suzuki is managing to sustain at levels of Rs 1129. What do you make of it?

Maruti Suzuki is one stock, which has rallied significantly from the lows that we have seen. Upside from these levels look fairly limited. The positive side if you look at Maruti is essentially the fact that if you see this auto expo, the competition intensity on the small car market seems to be coming off and that should help Maruti. Second, they should probably be able to report better results next year because of the fact that they would not have a strike, which would have essentially brought down this year’s base number. There are a couple of things that are going positive for Maruti but my sense is the stock has essentially moved significantly from the lower levels and at this point it is pricing it around 200-250 bps increase in EBITDA margins over the course of next year. I would think again here that the upside from these levels from Maruti should be fairly limited.