Buy Maruti Suzuki; target of Rs 1240: DSP ML
DSP Merril Lynch is bullish on Maruti Suzuki India and has recommended buy rating on the stock in its December 12, 2007 reports. “Maruti’s growth in recent times has been largely driven by the success of its new products. The company will showcase at least two new models in the upcoming auto expo next month. We reiterate Buy on the stock, with PO of Rs 1240. We value the core business at 15x FY09E EPS, in line with existing multiples. Our PO also includes Rs 40 per share, being contribution from the engine venture. Risks: model launches and pricing action by competition, high interest rates, and rising fuel and steel prices, “says DSP Merrll Lynch research report.
