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India - Politics, Industrials, IT and Large Caps, EMAlpha

Pankaj Sharma

India - Politics, Industrials, IT and Large Caps

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/733" target="_blank" data-smartkarma-citation="entities:733:1">Maruti Suzuki India (MSIL IN)</a> stock has lost 20% in previous one month and it is at a 52 week low. Despite an occasional blip in monthly sales volumes, there is no structural and near term threat for its market leadership in India. Even otherwise, as such there are no fundamental issues with the company. But, that doesn't mean that more near term downside is not possible in <a href="https://www.smartkarma.com/entities/733" target="_blank" data-smartkarma-citation="entities:733:1">Maruti Suzuki India (MSIL IN)</a>. The competitors are not only getting smarter, there are challenges for the industry as well. There are increasing cost pressures and prices can't always be raised to compensate for them. Rupee depreciation is another big challenge which will not be good for <a href="https://www.smartkarma.com/entities/733" target="_blank" data-smartkarma-citation="entities:733:1">Maruti Suzuki India (MSIL IN)</a> financials.</p>

Maruti Suzuki India (MSIL IN) stock has lost 20% in previous one month and it is at a 52 week low. Despite an occasional blip in monthly sales volumes, there is no structural and near term threat for its market leadership in India. Even otherwise, as such there are no fundamental issues with the company. But, that doesn't mean that more near term downside is not possible in Maruti Suzuki India (MSIL IN). The competitors are not only getting smarter, there are challenges for the industry as well. There are increasing cost pressures and prices can't always be raised to compensate for them. Rupee depreciation is another big challenge which will not be good for Maruti Suzuki India (MSIL IN) financials.

Maruti Suzuki (MSIL IN): No Fundamental Issues but More Downside Possible Due to Strong Headwinds