Best Stocks to Buy Today : Kotak Securities's call on Maruti Suzuki India - November 11

Kotak Securities has issued a buy recommendation for Maruti Suzuki India, with a target price of Rs 11,700. This represents an upside potential of around 2.1% from the current market price of Rs 11,455.15. The brokerage firm believes that the company's strong fundamentals and dominant market position will continue to drive growth going forward.

About Maruti Suzuki India:

Maruti Suzuki India Limited (MSIL) is India's leading passenger car manufacturer. It is a subsidiary of Suzuki Motor Corporation of Japan. MSIL was established in 1981 and is headquartered in New Delhi. The company has a wide range of car models, including hatchbacks, sedans, and SUVs. MSIL operates through a network of over 2,300 dealerships in India. The company's popular models include the Alto, WagonR, Swift, Dzire, and Vitara Brezza. MSIL has a strong commitment to research and development, and it has invested heavily in its R&D facilities in India.

52 Week Price Trend:

Maruti Suzuki India's current market price (CMP) of Rs 11455.15 falls between its 52-week high of Rs 11720 and low of Rs 8127.05. The stock has witnessed significant volatility over the past year, but has been showing a gradual upward trend in recent months. Despite facing headwinds such as rising input costs and supply chain disruptions, the company's strong brand recognition and dominance in the Indian passenger vehicle market continue to drive investor interest.

Stratzy's MOST Analysis:

Within Stratzy's MOST framework, Maruti Suzuki has received a rating of AA-. The MOST framework evaluates stocks based on four pillars: Management, Outlook, Safety, and Trend. Each pillar is scored, contributing to an overall score which ranges from AAA to CC-. The AA- rating indicates that Maruti Suzuki exhibits low fundamental risks and strong performance in areas such as management effectiveness, growth prospects, financial stability, and market trends. This rating suggests that Maruti Suzuki is a financially sound and well-managed company with a positive outlook.

Company's Fundamentals:

Maruti Suzuki India (NSE: MARUTI) is a leading automobile manufacturer listed on the National Stock Exchange (NSE) of India. Its stock is currently trading at a Price Earnings (PE) ratio of 29.58, indicating that investors are willing to pay 29.58 times the company's earnings per share. The Price to Book (PB) ratio of 5.48 suggests that the company's market value is 5.48 times higher than its book value. Additionally, the company's Dividend Yield of 0.78% implies that it pays out 0.78% of its share price as dividends to its shareholders annually.

Fundamental and Technical information provided in this blog were last updated on 09 Nov, 2024

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