Maruti: What a dip in Valuation Score means for the stock

Summary: Festive bookings, GST cuts and soaring momentum have pushed Maruti Suzuki to a perfect 5-star rating on our system. But this has come with the valuation cushion shrinking. Check how the stock’s valuation comfort has vanished and whether it’s still worth buying. India’s largest carmaker Maruti Suzuki is back in the fast lane. The auto maker has seen its stock shift into top gear in recent days, thanks to a potent combination of festive-season demand and a sharp cut in GST on small cars and SUVs. The timing couldn’t have been better. On the first day of Navratri this Monday, Maruti received close to 30,000 bookings and nearly 80,000 enquiries, the best it has seen in years at the beginning of the festive season. The same day, the government’s decision to slash GST on mass-market cars from 28 per cent to 18 per cent kicked in. With Maruti also rolling out its own discounts, hopes of a revival in entry-level car demand are running high. But while the headlines capture the sales buzz, here’s how the stock’s profile has shifted—something our Value Research Stock Rat