January 2012

this yr FY 12 ..... maruti may give EPS of 45/47 .... max

next yr it may give somewhere around 65 .... if everything goes well .....

that means current price is discounting FY 13 eps at about 17 times ..... and that too with lots of ifs and buts about 65 rs eps ....... as rupee devaluation may not go away soon and all related problems like royalty in yen / raw matls in yen wl continue ........

i dont think a few hundred rs cut that may happen in EMI due to reduced interest rate is a big positive .... SINCE INCREASE WAS NOT A BIG NEGATIVE EITHER .......

so just decide if u r comfortable at these valuations and THEN ONLY INVEST ......

i think a price level between 1000/1050 gives some cushion for investors ........