Maruti Suzuki Share Price Surges to New High
Maruti Suzuki India Limited is in focus on Thursday as the company’s share price surged by 4% to reach Rs 13,675, marking a new 52-week high. The sharp increase in share price is attributed to the stellar results in the June quarter, with brokerage firms showing enthusiasm for the stock. Out of 46 analysts covering Maruti, 31 have given a ‘Buy’ rating, while 11 have given a ‘Hold’ rating.
Brokerage Firm Recommendations
- Morgan Stanley has maintained its overweight rating on the stock and raised its target price from Rs 14,105 to Rs 15,145.
- CLSA has kept an outperform rating on Maruti with a target price of Rs 15,000.
- Nomura has a ‘Neutral’ rating on Maruti with a target price of Rs 13,133.
- Jefferies has increased the target price on Maruti from Rs 14,750 to Rs 15,200.
Strong Financial Performance
Maruti Suzuki India’s net profit for the first quarter of the financial year 2024-25 increased by 47% to Rs 3,650 crore. The company attributed the profit growth to cost-cutting efforts, favourable steel prices, and foreign exchange gains. In the same quarter of the previous financial year, Maruti had reported a net profit of Rs 2,485 crore.
Robust Sales Figures
In the reviewed quarter, Maruti’s net sales rose to Rs 33,875 crore, up from Rs 30,845 crore in the corresponding quarter of the previous financial year. The company sold 5,21,868 units in the reviewed quarter, a 5% increase from the same period last year. Domestic sales in the first quarter increased by 4% to 4,51,308 units.
Export Growth and Board Changes
During the April-June quarter, Maruti’s exports grew by 12% to 70,560 vehicles. The automobile manufacturing company also announced the appointment of Anjali Bansal and Irina Vitthal as independent directors, with Leera Goswami being reappointed as an independent director. Maruti’s share closed at Rs 13,167.95 in the Mumbai stock market, registering a 2.28% increase.
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