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Shares of Maruti Suzuki India have moved higher by nearly 5% to Rs 3,815, extending its previous day’s 3% gain on the NSE, after reporting a better-than- expected 61% year-on-year (YoY) jump in net profit at Rs 1,284 crore for the quarter ended March 2015 (Q4).
Net sales grew 12.3% at Rs 13,273 crore on YoY basis. Its EBIDTA margins rose 558bps YoY and 322bps QoQ to 15.9% on account of lower import cost, helped by Yen depreciation.
Higher volumes, material cost reduction initiatives, favourable foreign exchange and lower sales promotion expenses contributed to the bottom-line during the quarter, Maruti Suzuki India said in a statement.
Daljeet Kohli & Abhishek Jain, analysts at IndiaNivesh Securities believe Maruti Suzuki would be the biggest beneficiary of impending demand recovery, considering its stronghold of worst impacted entry level segment as well as favorable product lifecycle.
Karvy Stock Broking reiterates ‘buy’ rating on the stock with target price of Rs 4,500.
We believe that first time buyers will continue increasing amid expected economic recovery and positive sentiments from urban market, despite near term headwinds. We believe that Maruti Suzuki’s strong product pipe line coupled with vast dealer network would be the key driver over next 2-3 years, Mitul Shah, analyst at Karvy Stock Broking said in a result review.
The stock opened at Rs 3,664 and touched a record high of Rs 3,819 on the NSE. Till 1433 hours, a combined 1.02 million shares changed hands on the counter on the NSE and BSE.
Net sales grew 12.3% at Rs 13,273 crore on YoY basis. Its EBIDTA margins rose 558bps YoY and 322bps QoQ to 15.9% on account of lower import cost, helped by Yen depreciation.
Higher volumes, material cost reduction initiatives, favourable foreign exchange and lower sales promotion expenses contributed to the bottom-line during the quarter, Maruti Suzuki India said in a statement.
Daljeet Kohli & Abhishek Jain, analysts at IndiaNivesh Securities believe Maruti Suzuki would be the biggest beneficiary of impending demand recovery, considering its stronghold of worst impacted entry level segment as well as favorable product lifecycle.
Karvy Stock Broking reiterates ‘buy’ rating on the stock with target price of Rs 4,500.
We believe that first time buyers will continue increasing amid expected economic recovery and positive sentiments from urban market, despite near term headwinds. We believe that Maruti Suzuki’s strong product pipe line coupled with vast dealer network would be the key driver over next 2-3 years, Mitul Shah, analyst at Karvy Stock Broking said in a result review.
The stock opened at Rs 3,664 and touched a record high of Rs 3,819 on the NSE. Till 1433 hours, a combined 1.02 million shares changed hands on the counter on the NSE and BSE.
