Sell Maruti Suzuki With Stoploss Of Rs 1320
Stock market analyst Salil Sharma is of the view that investors can sell Maruti Suzuki stock with a target of Rs 1250.
According to him, investors can sell the stock with a strict stop loss of Rs 1320.
If the stock fell below Rs 1243, it may see more weakness.
Today, the stock opened at Rs 1296 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 1740 and a low of Rs 806 on BSE.
Current EPS & P/E ratio stood at 86.45 and 14.93 respectively.
After selling the stock, the interested investors can enter the stock again at a low price, for medium or long term prospective.
With demand increasing afar the company's prospects and new capabilities taking time to come on stream, Maruti Suzuki said that it is being forced to lessen focus on the profitable export market and deflect production to the domestic market.
Maruti Suzuki does not plan to augment exports any further, thereby repressing its previous objectives.
It is, instead, readying to confront a production crisis by the next 18-24 months at its two mega car making plants of Gurgaon and Manesar, both in Haryana, shut to Delhi.
According to the company's MD, Shinzo Nakanishi, the two production plants that can manufacture a million units per annum between them will be extended to the capacities by 2010 end.
Maruti is trying to discover ways to boost production further by around 70,000-80,000 units annually at Gurgaon, its older plant, in order to meet demand.