CLSA has downgraded Maruti Suzuki India to sell from underperform with a target price of Rs 6,420. The stock was marginally under pressure. The big fear in the market is that Maruti is unable to compete with its peers in the high-growth SUV space and is losing market share in that segment. Lack of launches is hurting their market share.
As per CLSA, there could be a downgrade in volumes and margins for FY23-24. However, margin recovery is on the cards because the worst of raw material issues are behind us but could be below consensus.
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