Maruti Suzuki –Buy- Kotak Securities
Maruti Suzuki India (MSIL) is the largest player in the Indian car market with 50% market share. MSIL is way ahead of its competitors with its strong brand equity and excellent dealer network.
Indian car industry is at the cusp of strong long term growth and the entry of global auto giants in the Indian market validates this view. MSIL being the market leader with the first mover advantage stands to benefit significantly. We believe the concerns related to increased competition and the margins pressure have been factored into the price.
Positive industry outlook and MSIL’s expected continuance of strong volume growth gives us reasons to consider the company as the best bet in the passenger car segment. We initiate coverage on the stock with a BUY rating.
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