Nirmal Bang has rated Maruti Suzuki India as an underperformer in its April 27, 2009 research report.
"Maruti Suzuki India declared its Q4FY09 results which were in line with our expectations on the profitability front. The company reported revenues of Rs 7097.4 crore which were in line with our expectations, as against Rs 5585.9 crore in Q4FY08 i.e. 27% rise YoY basis and Rs. 5165.71 crore Q3FY09, a 37.4% rise on QoQ basis. PAT was down by 18.4% at Rs 243.1 crore from Rs 297.9 crore on YoY basis. However on the QoQ basis the PAT was up by 13.8%."
"We believe that though the company being a leader in this segment & having more than 50% of market share, the competition is increasing in the A2 & A3 segments which are the major revenue earners for the company. The company will also face some competition for Alto the largest selling car of the company from Nano. We believe the company will record a moderate volume growth of 7-8% for FY10 with more emphasis on Swift, Swift dezire & SX4. At the current valuations the stock now looks fairly valued. We therefore believe the stock will underperform the markets," says Nirmal Bang's research report.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
