Hold Maruti Suzuki, target of Rs 1676: Sharekhan

Sharekhan has maintained its hold rating on Maruti Suzuki India with a target price of Rs 1676 in its September 22, 2009 research report. At 15:09 pm, the share was quoting at Rs 1,646.00, up Rs 5.15, or 0.31%.

"Accordingly our FY2011 estimates increase by 4.1% while our price target stands revised to Rs 1,676. At the current market price, the stock is trading at 19.8x it FY2011E earnings of Rs 83.8 and an EV/EBITDA of 12.7x. Thus, though the company’s prospects look good, considering its stock’s steep valuations we maintain our Hold recommendation on MSIL. However, MSIL remains our top pick in the auto sector," says Sharekhan's research report.