Hold Maruti Suzuki: SP Tulsian

Hold Maruti Suzuki: SP Tulsian

Hold Maruti Suzuki with an investment perspective, says Investment Advisor, SP Tulsian. Tulsian told CNBC-TV18, “Particularly if you see the performance of Maruti Suzuki, they have created the new capacity one and a half years back thinking that probably this will be enough for them to cater to their demand for next three to three and a half years. But they have already been seeing operating at a virtually full capacity with the sales of more than 90,000 cars every month and now they are contemplating to go for the new capacity creation.” He further added, “I don’t think that the stimulus rollback or the excise hike has already been factored in and the kind of volume growth we have been seeing for the passenger car, the major share of that is flowing to Maruti. Psychologically, this will have a negative impact once you will be seeing the excise hike for all the passenger cars particularly maybe Maruti being the largest player.” “If one needs to take a little longer view on the stock, maybe overall on the auto sector then definitely I will be choosing Maruti as the largest beneficiary if you have a time horizon of 4-6 months. If he/she is a trader then one can contemplate exiting at about maybe just prior to Budget but if one is an investor I don’t think that one needs to worry even if he/she is holding the stock.”