Maruti drops on reports of foreign brokerage downgrade

Maruti Suzuki India fell 0.05% to Rs 3,726 at 15:19 IST on BSE on media reports that a foreign brokerage has downgraded the stock to outperform from buy citing likely pressure on the car major's operating profit margin in FY 2017.

Meanwhile, the S&P BSE Sensex was down 7.37 points or 0.03% at 25,331.21.

On BSE, so far 58,000 shares were traded in the counter as against average daily volume of 87,602 shares in the past one quarter. The stock was volatile. The stock lost as much as 1.6% at the day's low of Rs 3,668 so far during the day. The stock rose as much as 0.99% at the day's high of Rs 3,765 so far during the day. The stock had hit a record high of Rs 4,789 on 23 November 2015. The stock had hit a 52-week low of Rs 3,202.10 on 29 February 2016.

The large-cap company has equity capital of Rs 151.04 crore. Face value per share is Rs 5.

The foreign brokerage reportedly said that outlook on Maruti's volumes and margins has weakened with softening passenger vehicle demand, hike in auto taxes and strengthening yen.

Maruti Suzuki India's net profit rose 27.1% to Rs 1019.30 crore on 20.4% growth in net sales to Rs 14767.70 crore in Q3 December 2015 over Q3 December 2014.

Japanese parent Suzuki Motor Corporation held 56.21% stake in Maruti Suzuki India (as per the shareholding pattern as on 31 December 2015).

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