You are right that Maruti really disappointed in the Sep quarter and let us look at the results more closely. The net profit was 40% lower and it could have been much lower had it not been for other income and lower effective tax rate. In short, the net profit figure could have been a lot worse in reality. The problem for Maruti start at the top line with demand for cars lower by 30% on a YOY basis. This slump in vehicle sales resulted in a 25% drop in net sales. But that was only part of the story and the real problem for Maruti was in the steep discounts that they were forced to offer during the quarter to reduce the piling stock with dealers.

It may be recollected that in the first week of October, Maruti had already trimmed its FY20 earnings estimate by 30%. This was attributed to a consistent slowdown in the automobile market in India as well as frequent production shutdowns undertaken voluntarily by the company to match demand and supply. Maruti Suzuki contributes a bulk of the consolidated revenue and profit of Suzuki and Japan and the parent is having limited visibility for its India business at this point of time.

But the much bigger problem as I had mentioned earlier is the huge discounts that the company had to offer to offload stocks. Even these lower sales came on the back of the highest-ever average quarterly discount of Rs.25,761 per vehicle. This is substantially higher than the Rs.18,758 and Rs.16,941 per vehicle discount offered in Q2FY19 and Q1FY20. Despite all these incentives offered, Maruti actually saw a loss in market share from 52.1% last year to 49.8% in this year. After the recent bounce, a lot of the short to medium term positives appear to be already priced into the stock. Traders can use dips to buy but investors must avoid. In your case, since you have bought at lower levels, you can either keep a stop profit level or use short futures to lock in the profits depending on your comfort level.