Maruti Suzuki India Ltd : Come back on a significant threshold
By Maxime Nonglaton
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
₹1,102.95 | ₹0 | ₹1,048 | -100% |
In 2013, the profitability of Maruti Suzuki India Ltd should improve as the net margin growth shows. It should be at 6.17% in 2015 against 5.67% for the current year and sales are expected to increase. To date, PER for 2013 is estimated at 12.74 and at 10.54 for 2014. The company is valued 0.61 times revenues estimated for this year. This ratio should be taken into consideration by investors.
In the short term, the bearish trend has known a weakening close to the INR 1067.5 mid-term support. This level stopped the bearish trend of these last days. A new bullish trend is forming toward 20-day moving average at INR 1176.4.
Investors can take a long position. In the first instance, the target price will be the 20-day moving average area. In case of breakdown of the INR 1067.5 support at the closing price, investors should close their positions.