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STOCK IN FOCUS
* Maruti Suzuki closed 1% higher as against Nifty rising by 0.4% yesterday.
* MSIL has been banking on success of its new launches. All the new launches i.e. Baleno, Brezza, new Ertiga, new Swift, new Wagon-R etc are successful with a strong response in market over past few years.
* Moreover, BS-VI products of MSIL would bring higher market shares for Company as its BS-VI products are expected to be better quality and most cost effective. We believe that these BSVI products would bring back pricing power for the company, resulting into healthy margins going forward.
* We expect increase in first time buyers from revival of rural demand in 2HFY20 amid government’s rural focus.
* We have positive view on MSIL on account of market share gain coupled with healthy return ratio. We recommend BUY on MSIL with target price of Rs 7,570, valuing the stock at 22x FY21E EPS.
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