Demand recovery, new launch hopes drive gains for Maruti Suzuki

Price hikes effective from July 1 could offset input cost pressures

The Maruti Suzuki (MSIL) stock gained over five per cent after the company announced price hikes across its portfolio to counter high input costs. The Street is also expecting passenger vehicle volumes to improve as the vaccination gathers pace and more states relax restrictions imposed after the second wave.

Even as the company had posted a strong top line growth in the March quarter, operating profit margins of the country’s largest passenger car maker were down 21 basis points to 8.3 per cent and were short of analyst estimates.

The current hike, which will be applicable from July 1, will