Sir, Prevest is down by 11%. Is it something to do with preferential treatment to the leadership team who is a kin of promoters? Have you got out of Prevest?

Maruti’s Game plan seems to be playing out very well.
(1) Strategy -1
Not in a hurry to introduce EV during this ongoing euphoric period when the cost stricture, supply chain for EV is not yet well established…Maruti did not get allured by lower GST of 5% GST as against 48% for petrol. Perhaps their objective of offering a people’s low cost EV car may not have worked out in spite of lower GST of 5% being offered by Govt.
Also uncertainty about Govt’s lower GST offer for EV- How long Govt can give subsidy?

So , roll out EV only after dust settle down & EV supply chain gets stabilised and their own EV battery plant in Gujarat starts producing EV batteries. They are aiming only 30% EV of their portfolio by 2030.

(2) Strategy -2
Diesel vehicles are notorious in releasing SPM/RSPM in to air and Maruti realised this ahead of other peers that diesel it is not a sustainable technology and sooner or later it has to be banned.
So Phase out completely Diesel vehicles- first in the Industry to take a bold step. This strategy is also playing out well. Delhi has banned diesel vehicles and many cities like Mumbai which are heavily polluted may also ban disel cars and sooner or later many other cities may take similar curbs.
So who is likely to gain – EV, Petrol , CNG ,

(3)Strategy 3
Maruti’s EV strategy is as per strategy 1
So how does it perform and execute its business Goals.
Focus on petrol Hybrids and CNG. This strategy has also played out well.
On CNG , Maruti had the first mover advantage in rolling out it’s CNG range…They are the market leaders as OEM of CNG cars since last 12 years and now it is accelerating at a faster pace aiming to sell 4,50,000 CNG cars this fiscal. These cars can run with CBG as well They have now collaborated with Gujarat milk federation to produce Bio gas – CBG from cow dung to fuel Maruti Cars in place of CNG

(4) Strategy 4
: Partner with Toyota to get Hybrid technology initially and then later switch to Flexi Hybrids.
This technology allows Ethanol to be used in place of petrol.in all possible ratio’s.
Maruti’s smart hybrids now selling like a hot cake as many customers find the advantage over EV with regards to Range and charging infrastructure.

So currently , Hybrids and CNG is 40% of it’s total sales

And Look at the growth rate of Hybrids cars in India ?
It is almost equals the EV cars in spite of the fact that EV carries 5 % GST and Hybrids carry 43% GST…
So who moved my cheese ?
By the time peers like TML & others in the industry have realised this …it is too late to catch up. yes, CNG- many have already started …but Hybrids …right now many like TML yet to come out with a Hybrids.

Look at what RC Bhargava said on Q2 results

Discl : Invested , may be biased. please do your own assessment before investing

Trade receivables growth more than sales growth, while the trade payables has reduced. Company seems to be having cash flow issues. Even the tax paid is 0.
Not happy with the accounting standards.
Disc – Exited for now and tracking

Portfolio Update: Overall at ATH driven by Credit Access, NDR Auto

Exits: Sold NDR Auto fully. Company is still doing good but growth and opportunities lies elsewhere for me. Carysil full exit waiting for US Fed to start decreasing the rates. moreover I need cash as I mentioned earlier.
Increase in allocation: AMI Organics, CIE Automotive, Shivalik Bimetal
RE-Entry: MAS Financial
Fresh Entry: GAEL around 280. moderating maize prices and Capex will start materializing in coming quarters.
Swing Trade: Did some trade in Lancer Containers for 20-30% gains

1. Credit Access(35%)
2. Shivalik Bimetal(15%)
3. Gujarat themis(12%)
4. AMI Organics(10%)
5. CIE Auto(10%)
6. GAEL(6%)
7. MAS(3%)
8. Gufic(1.5%)

Rest Cash.