Maruti Suzuki India - Double Trouble - Emkay

Reco: ACCUMULATE
CMP: Rs 1480
Target Price: Rs 1900

- Declining diesel car sales and the depreciating rupee are likely to lead to cuts in our/consensus earnings estimates

- Scenario analysis on diesel car sales reveal high sensitivity of our EPS to the same - a 10%/20% decline in diesel car sales could impact EPS by 18%/28%

- The cushion from a favorable currency has waned significantly and lower diesel car sales would affect our est.

- We fear that if the rupee continues to remain at ~58/$ and diesel car sales continue to remain weak, we might have to cut our EPS estimates by ~10%

Source : Equity Bulls

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