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Multiple triggers for Maruti

Migration up the value chain and success of new products to boost realisations, margins

Ram Prasad Sahu  |  Mumbai 

The Maruti Suzuki stock hit its lifetime high recently on favourable news flow, as well as triggers which should help the company outpace industry growth. While it is expected to be a beneficiary of the coming national goods and services tax (GST), what is helping it reap the gains is a shift in customer preference towards petrol-driven vehicles and value migration to higher-priced segments.

Maruti is also well placed with a portfolio that will help it gain from recovery in rural demand and pay commission hike. First, the GST gains. If implemented at an 18 per cent rate, Maruti would benefit ...

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First Published: Mon, August 08 2016. 00:36 IST