Maruti slides as foreign brokerage reportedly cuts target price
Maruti Suzuki India lost 2.94% to Rs 3,466.80 at 11:25 IST on BSE on reports that a foreign brokerage has cut target price on the stock while retaining its hold rating stating that valuations are still undemanding for the stock.
Meanwhile, the S&P BSE Sensex was down 118.44 points or 0.48% at 24,782.19
On BSE, so far 52,912 shares were traded in the counter as against average daily volume of 89,606 shares in the past one quarter. The stock hit high of Rs 3,578 and low of Rs 3,450 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 has reportedly said that yen benefit has started to reverse and is a significant headwind in the near term for Maruti Suzuki India. According to reports, every 1% appreciation in yen affects 15-20 basis points (bps) margin for the company. Yen hit 17-month high against dollar today, 7 April 2016.
Maruti Suzuki India after market hours yesterday, 6 April 2016 announced that it has introduced the automatic transmission option for the Zeta petrol variant of its premium hatchback Baleno. The Baleno Zeta (automatic CVT) petrol variant is priced at Rs 7.47 lakh ex-showroom Delhi. With this automatic transmission options are available on Delta and Zeta trim of Baleno. Maruti said it has sold over 44,000 Baleno cars through its premium retail channel NEXA across India. The model has pending orders for 55,000 units. Baleno is also the first model by Maruti Suzuki to be exported to Japan. Going forward Maruti Suzuki plans to export the model to more than 100 countries from India.
Maruti Suzuki India on 1 April 2016 said that its total sales rose 15.9% to 1.29 lakh units in March 2016 over March 2015.
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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