Suzuki at this moment has not yet confirmed any purchase of an additional stake in Maruti to DalalStreet.Biz Analysts , we would not be surprised to learn that Suzuki is seriously considering increasing its stake. Maruti's contribution to Suzuki's consolidate earnings is getting bigger and it is quite natural for Suzuki to try to minimize profit leakage to the minorityshareholders. Performance of Suzuki's other overseas businesses is patchy.
We believe the increase in stake underscores the strong positive outlook of Suzuki on the Indian Auto market growth and reduces the chances of conflict of interest between Maruti & Suzuki. We believe that Suzuki’s potential interest in buying additional shares will be positive for stock price performance.
