Maruti Suzuki - August 2012 Sales Update - Edelweiss

Maruti Suzuki (MSIL IN, BUY, TP: INR1,413)

- Total sales of 54,154 units were lower than our expectation of ~74k units.

- Slow production ramp up at Manesar and weak demand for petrol cars led to this poor performance.

- Exports performance was also affected due to lock out.

- We expect Manesar plant to reach at almost full capacity by October. Additionally, new launches will also help post sequential growth here on.

- We have a 'BUY' recommendation on the stock with TP of INR1,413.

Source : Equity Bulls

Keywords