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Shares of Maruti Suzuki India Ltd fell as much as 2.2 per cent to Rs 7,126.05 as brokerages cut the price target on margin woes.
Morgan Stanley has cut the price target by 12 per cent to Rs 8,725. It has maintained 'overweight' rating. Macquarie Research has cut the price target to Rs 9,000 from Rs 11,500, and has maintained 'outperform' rating.
Expect demand headwinds due to a rise in the cost of ownership stemming from higher fuel prices and new motor insurance rules, says Macquarie.
Sales growth slowdown over July-September was due to high base last year, delayed festive season and impact of flooding in Kerala and elsewhere, says Morgan Stanley.
Believe investors are concerned about the impact on sales momentum and margins from rising interest rates, inflation and fuel prices; rupee depreciation; and rising discounts on certain models, it adds.
Maruti Suzuki stock had gone down 25.1 per cent this year as of last close.
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