Kotak downgrades Maruti Suzuki to sell

Kotak Institutional Equities downgraded Maruti Suzuki India Ltd to "sell" from "reduce," saying the outlook for the company will be more challenging than currently priced by the stock.

Kotak notes Maruti Suzuki shares are factoring in expectations for a "sharp recovery" in volumes in fiscal year 2015 but says the year could instead be challenging because of "high inflation and weak job market conditions."

"We are also concerned on low capacity utilization levels of the industry and strong competitor launches, which will restrict operating margin improvement," Kotak adds.

Kotak is only one of five brokerages out of 54 tracked by Thomson Reuters to rate Maruti Suzuki at "reduce", "underweight", or "sell."

Maruti shares are up 19.7 percent so far this year, after hitting a record high on December 20. Its shares were down 0.9 percent at 10.25 am.

Post new comment

E-mail ID will not be published
This question is for testing whether you are a human visitor and to prevent automated spam submissions.


  • The economic survey falls in step with the BJP’s election manifesto

    It’s always tough to find something wrong with the annual economic survey as it only articulates the government’s desire to set its house in order


Stay informed on our latest news!


GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India


Arun Nigavekar

Why higher education needs innovation

India is such a great country that it creates complexity ...

Zehra Naqvi

We must overcome the fear of death

It is the biggest irony that the only thing that’s ...

Dharmendra Khandal

Jawai leopards and locals can coexist peacefully

At first glance, the Jawai landscape seems like a large ...


William D. Green

Chairman & CEO, Accenture