July 12, 2013
Macquarie cuts Maruti Suzuki from ‘outperform’ to ‘neutral’ and reduces its target price from Rs. 1850 to Rs. 1,525, stating continual decline in sales of passenger cars and discounts on models. Due to the decreased demand for small cars and passenger vehicles, Macquarie had to cut target price and downgrade Maruti India Limited.
Even the investment bank reduces its fiscal sales prediction for the brand by 5.7%. Macquarie said higher discounts and weak Indian rupee counterpart the beneficial effect to Maruti from a weaker yen (Japanese currency).
The shares of Maruti Suzuki were up 0.3% at Rs 1, 548.75 at 1pm.