NEW DELHI: Maruti Suzuki’s December quarter amounts failed to enthuse commentators as they felt higher-than-expected discounts during the third quarter fortified the challenging demand environment and left restriction expect visibility.A strong rabi sowing data clues towards an impending urban recovery, they said, but an absence of diesel portfolio in the near-term remains a key monitorable for the stocks, they computed while slashing EPS estimates for the auto make by 5-8 per cent for FY21-22 to factor in weak demand.Credit Suisse has maintained neutral on Maruti Suzuki with a target of Rs 6,400. It has cut its FY2 1-22 EPS thinks by practically 8 per cent of cases to rationalise strong volumes. Goldman Sachs too felt that dismiss dragged the Q3 lists, but this brokerage expects some improvement and feels Maruti is best-positioned for the BS-VI transition. Other brokerages beg to differ. “Q3FY 20 crowds reaffirm our thesis of a shaky demand environment. We continue to believe MSIL’s market share and/ or profitability remain at risk due to a softened brand-new make repetition. In the near term, patron credence of the petrol Brezza replacement for the BS IV diesel variant post BS VI transition remains a key determinant of earnings, ” said Edelweiss Securities. Edelweiss has rewritten down its FY21 EPS estimate for the automobile creator by 5 per cent of cases to factor in weak demand and adverse merchandise mentality; and has rewritten target for the stock to Rs 5,852 from Rs 6,009 earlier.Nirmal Bang Institutional Equities remained negative on the stocks, as demand scenario remains uncertain and purchaser wish switchings towards utility vehicles( UVs ). Since Maruti is dominant in the cars segment, which is declining faster than UVs, it has been losing market share in the UV segment, the brokerage noted.Data showed that 10 out of 13 brand-new launches in the PV segment of late were practicality vehicles. As a arise, UV share in PVs increased from 27.9 per cent in FY19 to 34.2 per cent in first nine months of FY20. “We expect Maruti to continue losing market share as more frameworks will be launched in the UV segment and industry professionals envision UVs to outperform autoes in FY21 as well. Besides, although lessening, but 20 per cent of cases of Maruti’s volume in 3QFY20 was diesel and the company will not be converting its diesel provides to BS-VI for now. We see this as another reason why Maruti will lose share in the medium term as race, ” the brokerage said.
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