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Maruti Suzuki India inches up after brokerage upgrade

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Capital Market
Last Updated : Jun 28 2017 | 3:28 PM IST

Maruti Suzuki India rose 1.03% to Rs 7,265.50 at 14:25 IST on BSE after a foreign brokerage house reportedly retained its buy call and raised its price target on the stock.

Meanwhile, the S&P BSE Sensex was down 112.65 points, or 0.36% to 30,845.61

On the BSE, 36,000 shares were traded in the counter so far, compared with average daily volumes of 60,622 shares in the past one quarter. The stock had hit a high of Rs 7,322.45 and a low of Rs 7,207 so far during the day. The stock hit a record high of Rs 7,469 on 9 June 2017. The stock hit a 52-week low of Rs 4,008 on 27 June 2016.

The stock had outperformed the market over the past one month till 27 June 2017, rising 0.81% compared with 0.23% fall in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 21.05% as against Sensex's 5.89% rise. The scrip had also outperformed the market in past one year, surging 76.53% as against Sensex's 17.25% rise.

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

A foreign brokerage house reportedly retained its buy call on Maruti Suzuki India and raised target price on the stock to Rs 8,824 from Rs 7,412 earlier. The stock will continue to trade at premium valuations due to high growth visibility and consistently improving free cash flow due to limited capex requirements, the brokerage house said.

Maruti Suzuki India'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.

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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: Jun 28 2017 | 2:50 PM IST

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