Goldman Sachs downgrades Maruti to sell

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Last Updated: Thu, Feb 16, 2012 12:42 hrs

Goldman Sachs has downgraded Maruti Suzuki to 'Sell' from 'Neutral' and cut target price to 922 rupees from 1,042 rupees on back of 32 percent increase in stock price year-to-date and lower-than-expected sales volume and margin performance in fiscal third quarter.

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Competition and technology costs, yen exposure, cyclical weak near-term demand and recent labor issues are some other issue for Maruti, Goldman Sachs said in a note.

It has added Maruti to its Conviction List-Sell.

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At 11.36 a.m., the stock was up 0.56 percent at 1,311 rupees.