R Venkat Subramanian of Kotak Securities is of the view that Maruti Suzuki is looking attractive from a longer-term point of view.
Subramanian told CNBC-TV18, "Maruti is definitely attractive from a longer-term point of view and when I say longer-term I am talking about the next cycle for up turn in auto sector, which would be driven by softening up interest rates and somewhat easy norms for credit consumer credit. I think that is sometime away but these stock prices fallen enough, maybe around Rs 600-620 levels it represents reasonable value and one would start accumulating."
He further added, "Tata Motors is in a different set of circumstances. On the one hand they have to deal with the acquisition that they have done which is going to take a long time before-if at all-it shows any profit and on the other hand, they are in the midst of very ambitious launch of a low price car. I think that company and that stock for sometime is going to be definitely not in a reckoning for any kind of buying act even if interest rates were to fall. So Tata Motors is in a secular set of problems of its own whereas I would look at Maruti to buy on dips to play for the next cycle, which that stock is well positioned for as a proxy to consumption in the Indian consumer segment."
Published on Tue, Sep 09 at 11:05 , Updated at Tue, Sep 09 at 11:48 Source : CNBC-TV18
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