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Tuesday, December 24, 2024 | 01:25 AM ISTEN Hindi

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Near-term worries for Maruti stock, even as product demand remains strong

While competition environment for the firm is benign for now, rising commodity prices, entry of new players are issues

Maruti Suzuki, commodity prices, Auto component, Uber, Ola, HSBC, GST, India Ratings and Research, Ind-Ra, Baleno, Brezza, Dzire, Swift, passenger vehicle, Kia, SAIC, Peugeot, IIFL,
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Ram Prasad Sahu
The Maruti Suzuki stock has shed about 12 per cent from its all-time intra-day high of Rs 10,000, recorded in mid-December 2017. That is due to the correction in broader markets and softer demand expectation for the industry, especially in the urban segment.
Although demand for Maruti's key models remains strong, some analysts also point to the possibility of capacity constraints for the company in 2018-19. While the competition environment for the company is benign for now, rising commodity prices and entry of new players are issues. Having said that, analysts also say many of these are temporary and long-term investors

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