Three significant reasons for being bearish on Maruti Suzuki in spite of optically good Q4 Fy-13 results.
1. Merger of Suzuki Powertrain with MSI is EPS negative and very bad deal for existing MSI shareholders:
Here is how:
Suzuki Power train has been merged with MSI at very expensive enterprise valuation of more than 2000 crores. Before merger Suzuki had 70% stake in the company while rest 30% was held by Maruti. Financial of Suzuki Power train is as follows: