Sell Maruti Suzuki With Target Of Rs 1160

Sell Maruti Suzuki With Target Of Rs 1160Technical analyst Salil Sharma maintained 'sell' rating on Maruti Suzuki Ltd stock with a target of Rs 1160.

According to analyst, the investors can sell the stock below Rs 1210 with a stop loss of Rs 1230.

Today, the stock of the company opened at Rs 1218.80 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 1599.90 and a low of Rs 1186.30 on BSE.

Current EPS & P/E ratio stood at 79.10 and 15.36 respectively.

Maruti Suzuki India has recorded a drop of 17.80% in its net profit, which stood at Rs 5,651.70 million for the quarter ended Dec 2010.

The company's net profit during the same period of last year stood at Rs 6,875.30 million.

Total income of the company surged 26.39% to Rs 96,227.20 million as against Rs 76,132.70 million for the three month period ended Dec 2009.

Maruti Suzuki India (MSIL) has also raised the costs by around Rs 8,000, except for its freshly-launched compact car Alto K10, to contest increasing input costs.

Shashank Srivasatava, chief general manger, marketing stated, "Material costs amount to 80 per cent of the cost of production of a car. Increase in input costs puts pressure on profitability. We have tried to absorb the rise in costs to the extent possible, but now we had to pass it on to the consumers."

The company lifted up prices across models between 0.5 and 2.2% that will be transformed into a jump between Rs 1,000 and Rs 8,000.