Mumbai: India’s largest carmaker, Maruti Suzuki India Ltd, is the second-most expensive auto stock among the top 20 global auto stocks after Tesla Motors, with the premium based on a double digit sales growth outlook, and strong valuations for Indian equity markets. Shares of Maruti Suzuki tested fresh record high of Rs.5,037.90 on Tuesday. Maruti is also the 15th largest auto company in the world, in terms of market capitalization, which stands at $22 billion. “Catalysts such as the implementation of the Seventh Pay Commission and a rural demand recovery led by expected good monsoons may lead to further upside to industry growth,” Nomura analysts added. According to Bloomberg’s Best Estimates, Maruti trades at 21.22 times fiscal year 2018 price-to-earnings (P/E), after US’s Tesla Motors, which trades at 33.42 times.

Source: Mint August 03, 2016 02:15 UTC