Maruti Suzuki to do well, courtesy Baleno, Vitara

According to certain media reports, brokerage house Credit Suisse has claimed that  Maruti Suzuki will do well owing to 'strong response' for its two newly launched models Vitara and Baleno. The brokerage house has upped the target for its stock from Rs. 4,302 to Rs. 4,606. 

According to a Credit Suisse report, response for both the models i.e Maruti Baleno and Vitara is strong and the company has strategically lowered the production of its Swift and Dzire in favour of Baleno. This move has allowed the company to reduce the discounting pressure on both the models i.e Maruti Swift and Maruti Dzire. The international brokerage house also expects steep ramping up for the Vitara Brezza as it is currently being produced at the Gurgaon plant which is less busy.

Credit Suisse believes both the models are highly profitable. The strong demand for both the models and the company's tactical strategy of producing less of twin models in favour of premium models like Baleno and Brezza will help offset the strong Yen effect .

Maruti Suzuki is trading in green on intra-day basis at 3950 up by almost Rs. 4 per share on Monday. On 1 Year basis the stock is up by almost 6 percent. The stock is trading below its 200 Simple Daily Moving Average (SDMA) suggesting weakness in the stock. The 52 week high/ Low for the stock is 3.193/ 4790.