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MARUTI: Q3 NP 1020 cr against market estimate of 1388-1395cr.
ON FRIDAY STOCK WENT up (after steep fall) DUE to HYPE ABOUT YEN (as if Maruti will benefit from it definitely and immediately), MKT WAS UP 400 POINTS THAT DAY and PANIC SHORTCOVERNG. We feel that SHORTCOVERING is OVER. Hence stock should resume downward journey. We Reiterate that MARUTI TP Feb Expiry 3740
A. All brokerage
have sharply downgraded TP of Maruti.
B. Maruti has highest ever car inventory at factory level.
C. Big hit at margin level which will not improve in Q4. Rather due to year end pressure, co may offer higher discounts in Q4. We are afraid that NP of Q4 may be lower than Q3. And NP for Q4 March14 was 1284 crores. Maruti may report NP of 950-975 crores for Q4 as metal prices also not so benign. Thus if Maruti Q4 deteriorates yoy basis, worst for Maruti share price yet to come
MARUTI: Q3 NP 1020 cr against market estimate of 1388-1395cr.
ON FRIDAY STOCK WENT up (after steep fall) DUE to HYPE ABOUT YEN (as if Maruti will benefit from it definitely and immediately), MKT WAS UP 400 POINTS THAT DAY and PANIC SHORTCOVERNG. We feel that SHORTCOVERING is OVER. Hence stock should resume downward journey. We Reiterate that MARUTI TP Feb Expiry 3740
A. All brokerage
have sharply downgraded TP of Maruti.
B. Maruti has highest ever car inventory at factory level.
C. Big hit at margin level which will not improve in Q4. Rather due to year end pressure, co may offer higher discounts in Q4. We are afraid that NP of Q4 may be lower than Q3. And NP for Q4 March14 was 1284 crores. Maruti may report NP of 950-975 crores for Q4 as metal prices also not so benign. Thus if Maruti Q4 deteriorates yoy basis, worst for Maruti share price yet to come
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