Emkay research has maintained buy rating on Maruti Udyog with target price of Rs 1234 in its February 26, 2008 research report. "MUL is the largest passenger car manufacturer in India and it has a sales network of 307 state-of-the-art showrooms across 189 cities with over 6000 trained personnel.

The company enjoys a market share of 58.5% in small and compact car segment and overall 52.6% market share in passenger cars. The company has aggressive plans to launch new models over the coming quarters.

MUL showcased 3 new cars viz. A-star, Splash and Kizashi which it plans to launch in coming quarters. Also, the company has plans to strengthen its product portfolio further in the A3 segment by launching the sedan version of swift by replacing Maruti Esteem. Moreover, It has successfully entered into growing diesel segment with the launch of Swift (Diesel)."

MUL has also said that it would increase the capacity of its new Manesar plant to 300,000 units. MUL has set a target of incremental exports of 100,000 units from this new plant. At present stock looks attractive at 10.4x FY09E & 8.5x FY10E earnings, 6.2x EV/ EBDITA FY09E & 5.0x EV/EBDITA FY10E and 1.1x FY09E MCAP/Sales & 0.8x FY10E MCAP/Sales