While we are NEUTRAL, we recommend buying the stock on corrections as Maruti is benefiting from the BS-VI transition due to its gasoline led portfolio. Further, the industry demand environment is expected to improve from here on. Key Risks: Rising competition from new entrants, particularly in the SUV segment, a delayed recovery. Maruti reported PAT growth of 5% YoY at Rs 15.6bn, reversing the declining profit trend of the past several quarters. On the margin, demand is improving driven by the rural segment. We are revising our TP to Rs 7,280 based on 23x Dec-21 EPS, as we value the stock at 5% premium to its average historic 10 year trading multiple (to factor in a pickup in demand).