Investment Advisor SP Tulsian is of the view that one can buy Maruti Udyog at current levels.
Tulsian told CNBC-TV18, "Maruti has reported sales of about 59,000 plus 59,440 for May 2007 and first two months sales figure has been more than 1,09,000 that means in April they effected sales of more than 50,000 while in May more than 59,000 and now there has been recent development that government is totally moved out of the company and about 55% stake is now held by Suzuki and close to 40% is held by mutual fund, insurance companies, banks and FIIs. So there is a very little floating stock of about 4-5% of Maruti into the market.
He further added, "The company’s performance by and large has been good about Rs 54 EPS for FY07. I think they are going to post a topline growth of at least 20% and maybe bottomline growth of also 20-24%. If you want to take a long-term call lets not get perturb by the acquisition cost which for this gentleman it is slightly lower than the present market price. But I am quite hopeful and have positive outlook on Maruti in the short to medium-term and even on the longer-term outlook. So my advice is that one could really go and buy at these levels but only thing he has to keep a longer-time horizon in his mind of at least 6-12 months. So my call on the company is clear buy at these levels."
Tulsian told CNBC-TV18, "Maruti has reported sales of about 59,000 plus 59,440 for May 2007 and first two months sales figure has been more than 1,09,000 that means in April they effected sales of more than 50,000 while in May more than 59,000 and now there has been recent development that government is totally moved out of the company and about 55% stake is now held by Suzuki and close to 40% is held by mutual fund, insurance companies, banks and FIIs. So there is a very little floating stock of about 4-5% of Maruti into the market.
He further added, "The company’s performance by and large has been good about Rs 54 EPS for FY07. I think they are going to post a topline growth of at least 20% and maybe bottomline growth of also 20-24%. If you want to take a long-term call lets not get perturb by the acquisition cost which for this gentleman it is slightly lower than the present market price. But I am quite hopeful and have positive outlook on Maruti in the short to medium-term and even on the longer-term outlook. So my advice is that one could really go and buy at these levels but only thing he has to keep a longer-time horizon in his mind of at least 6-12 months. So my call on the company is clear buy at these levels."
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