The Hindu Business Line : Maruti Udyog: Long-term buy

THE stock price of Maruti Udyog (MUL) has doubled since it was listed on July 9, 2003. At about Rs 355, the stock trades at a price earnings of 17 times the current year's annualised earnings. Investors with an appetite for high risk may consider buying the stock.

MUL is likely to close year 2003-04 with gross sales of over Rs 11,000 crore (compared to Rs 8,968 crore in 2002-03), an earnings per share of about Rs 21 and a market share of over 57 per cent (54 per cent). The outlook for Maruti's performance during the next two quarters is likely to be positively impacted by the improvement in rural demand, which is expected to further push up M800 sales. MUL's new price positioning strategy for the Suzuki Alto, the redesigned Wagon R and Zen, and the plans for a new small car that is currently under development by its parent Suzuki are factors that clearly point to upside potential.

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