Maruti Suzuki India rose 1.24% to Rs 6,985 after the company's chairman R.C. Bhargava told the media on Monday, 23 September 2019, that the firm expects higher car sales in September.
The company's chairman R.C. Bhargava was quoted by the media on Monday, 23 September 2019, that Maruti Suzuki India expects sales of its cars in September to be higher than the previous month as the uncertainty around the goods and services tax (GST) rate cut is over.Bhargava told the media that the booking levels have gone up substantially compared to last month, and the expectation is that the 29th and 30th of September will probably witness very high retail sales, he reportedly added.
The festive season in India that typically starts in end-September and lasts till October usually sees an uptick in auto sales.
Navaratri, a vibrant nine-evening festival in India that honors the Hindu Mother Goddess, starts on 29 September 2019 and and ends on 7 October 2019. Vijayadashami, also known as Dasahara, falls on 8 October 2019.
Meanwhile, the S&P BSE Sensex was almost flat at 39,089.08. The market surged in the past two sessions after the Finance Minister Nirmala Sitharaman on Friday, 20 September 2019, slashed corporate tax rate to 22% without exemptions. The effective corporate tax rate after surcharge now stands at 25.17%. The step has significant positive implications for corporates' profitability, broader economy and market valuations.
As on 31 March 2019, Maruti Suzuki India paid corporate tax of 29.71%.
Shares of Maruti Suzuki India surged 17.62% in three trading sessions to its current market price of Rs 6,985, from a recent closing low of Rs 5,938.30 on 19 September 2019.
On the BSE, 61,417 shares were traded in the Maruti Suzuki counter so far compared with average daily volumes of 1.81 lakh shares in the past two weeks. The stock hit an intraday high of Rs 7,183.75 and an intraday low of Rs 6,909 so far during the day.
The stock hit a 52-week high of Rs 8,320 on 21 September 2018. The stock hit a 52-week low of Rs 5,447 on 31 July 2019.
The stock had outperformed the market over the past one month, up 10.30% compared with 6.51% rise in the Sensex. The scrip outperformed the market in past one quarter, up 6.75% as against Sensex's 0.08% rise. The scrip had also underperformed the market in past one year, down 11.50% as against Sensex's 7.67% fall.
Maruti Suzuki India's consolidated net profit fell 31.7% to Rs 1,376.30 crore on a 14.1% decline in net sales to Rs 18,738.80 crore in Q1 June 2019 compared with Q1 June 2018.
Maruti Suzuki India is engaged in the manufacture, purchase and sale of motor vehicles, components and spare parts (automobiles).
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
