Maruti Suzuki looks attractive, says Saurabh Mukherjea

Aug 08, 2013, 02.30 PM IST

Saurabh Mukherjea, Head of Equities at Ambit Capital is of the view that Maruti Suzuki is looking attractive at Rs 1300.

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Saurabh Mukherjea, Head of Equities at Ambit Capital is of the view that Maruti Suzuki is looking attractive at Rs 1300.

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Maruti Suzuki looks attractive, says Saurabh Mukherjea

Saurabh Mukherjea, Head of Equities at Ambit Capital is of the view that Maruti Suzuki is looking attractive at Rs 1300.

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Saurabh Mukherjea, Head of Equities at Ambit Capital told CNBC-TV18, " Maruti Suzuki at Rs 1300 given the strength of the company's export franchise, its undoubtedly ability to build a much bigger export franchise than what is has today given its strength in the domestic market and specially in the small car market. Maruti Suzuki at Rs 1300 is very attractive."

He further added, " Bajaj Auto is the other name I would go for. Again it is a play on elections, on monsoon and on export market. Probably for all auto companies this is the one with the strongest export franchise. Our channel checks in Africa and Middle East suggest that Bajaj Auto is now significantly cheaper than Chinese bikes which are being exported from China into Africa. You have a superior bike available in export market at attractive prices. Those are straightforward bets to go after."

"For those with a greater appetite for risk I would point them towards Exide Industries which has made the beginnings will be a strong revival in their pricing power. You will see Exide pushing up prices continuously over the next three-four quarters. And if FDI in insurance gets approved by parliament then the whole concern about Exide's free cash flows being used to finance the insurance venture will also dissipate."

" TVS Motor Company is the cheapest of the bike companies for a good reason, they have underperformed operationally for a number of years now. But at six times earnings with the tie-up with BMW in the bag and it is a pretty substantive tie-up with BMW in the bag, I think the market has oversold TVS, so for greater upside Exide and TVS and for safe ride Maruti and Bajaj Auto."

Rokok Kanker