Citi downgrades Maruti stock

Citi has downgraded Maruti stock citing valuations and moderate demand. It has downgraded the stock to “neutral’’ from “buy’’.

Citi sees downside risks to earnings driven by heady valuations, moderate domestic demand and dissipating FX tailwinds.

According to Eikon data, the stock has 44 buy and 5 hold ratings.

It says that the stock trades at 12-month forward P/E of 20.8x vs 18x of rivals.

Separately, the sentiment remains underpinned on the company’s plan to raise FII investment limit in its AGM on September 4.