Maruti has been a significant under performer for last 4 years now. A part of this has to do with the Indian auto industry during this period and some concerns specific to Maruti (competition specifically).
However, it seems much of that is getting settled now. Auto industry post Covid is looking up and competition seems to be settling in. Though one keeps hearing noises from competitors e.g., Tata, Mahindra, Kia, MG , VW, Hyundai, it seems much of that is factored in.
Maruti seems to be making less noises and quietly focusing on building on it’s strengths of customer loyalty, service network and distribution. When companies like Ford decide to exit India, customers jump back to Maruti.
Also have a look at following Maruti’s stock performance chart.
Stock is trying to break out of the declining trend line of last 4 years and the risk reward ratio seems to be aptly placed for an upmove.
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