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Maruti in top gear on brokerage rating

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Capital Market
Last Updated : May 23 2017 | 2:47 PM IST

Maruti Suzuki India rose 2.77% to Rs 6,885 at 14:21 IST on BSE on reports a foreign brokerage has maintained buy rating on the stock for a target price of Rs 8,100.

Meanwhile, the S&P BSE Sensex was down 116.97 points or 0.38% at 30,454.

On the BSE, 59,000 shares were traded on the counter so far as against the average daily volumes of 67,188 shares in the past one quarter. The stock had hit a high of Rs 6,905.40 and a low of Rs 6,744.55 so far during the day.

The stock had hit a record high of Rs 6,969.60 on 16 May 2017 and a 52-week low of Rs 3,868.10 on 24 June 2016. It had outperformed the market over the past one month till 22 May 2017, advancing 7.99% compared with the Sensex's 4.11% rise. The scrip had also outperformed the market over the past one quarter, gaining 10.2% as against the Sensex's 5.91% rise.

The large-cap company has equity capital of Rs 151.04 crore. Face value per share is Rs 5.

The global brokerage house reportedly said that the company's retail passenger vehicle (PV) demand trends are showing a big improvement.

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The brokerage reportedly sees FY 2018 to be the first double digit growth year for the Indian PV industry since FY 2011. If demand improvement sustains, waiting lists for Maruti's models will grow, the brokerage added.

Shares of Maruti Suzuki India (Maruti) had declined 3.63% in the preceding four trading sessions to settle at Rs 6,699.55 yesterday, 22 May 2017, from its closing of Rs 6,952.60 on 16 May 2017.

Maruti's net profit rose 15.8% to Rs 1709 crore on 20.3% growth in net sales to Rs 18005.20 crore in Q4 March 2017 over Q4 March 2016.

Maruti Suzuki India is India's biggest car maker in terms of market share. Japanese parent Suzuki Motor Corporation currently holds 56.21% stake in Maruti Suzuki India (as per the shareholding pattern as on 31 March 2017).

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First Published: May 23 2017 | 2:23 PM IST

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