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Maruti Suzuki shares cross ₹13,000 for the first time, extend 2024 gains to 26%
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
At the day’s high of ₹13,024.50, Maruti Suzuki’s market capitalisation crossed the mark of ₹4 lakh crore. The stock has risen more than 26% so far on a year-to-date basis.
Shares of Maruti Suzuki India Ltd., the country’s largest passenger car maker, crossed the ₹13,000 mark for the first time on Tuesday, marking a new record, ahead of its fourth quarter results on April 26.
At the day’s high of ₹13,024.50, the stock’s market capitalisation crossed the mark of ₹4 lakh crore. The stock has risen more than 26% so far on a year-to-date basis.
The March quarter is usually seasonally the best quarter for passenger vehicle players on a year-on-year and a quarter-on-quarter basis. Domestic broking firm Motilal Oswal said that the PV segment posted healthy growth of 19% YoY and 20% sequentially, whereas other segments saw a slowdown in demand.
Reiterating ‘Buy’ on the stock with a target price of ₹13,500 per share, brokerage JM Financial said it believes that rationalisation of hybrid taxation could well be a trigger for re-rating to 28 times PE (price-earnings) offering an upside of another 4% from the current market levels.
“Given MSIL is an early-mover, we believe, the company stands to benefit the most from rationalisation of Hybrid taxation,” the brokerage said.
Another brokerage Centrum, which has a target price of ₹15,082 on the Maruti Suzuki stock, expect the company’s performance to be driven by reshaping of portfolio driven by SUVs, visibility on EV entry in FY25, and consolidation of SMG.
On the charts, Maruti Suzuki’s Relative Strength Index (RSI) is now at levels of 62.8. A reading above 70 would mean that the stock is in overbought territory.
Out of the 50 analysts that track Maruti, 41 of them have a ‘Buy’ recommendation on the stock. Six of those analysts have a ‘Hold’ rating, while three still advice ‘Selling’ the counter.
Shares of Maruti Suzuki settled 1.48% higher at ₹12,975.
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