Maruti Suzuki gains on weakness in Japanese yen against the dollar

Maruti Suzuki India rose 1.28% to Rs 4482 at 13:21 IST on BSE as the Japanese yen weakened against the dollar.

Meanwhile, the BSE Sensex was down 57.21 points, or 0.20%, to 27,884.90 .

On BSE, so far 66,000 shares were traded in the counter, compared with an average volume of 75,335 shares in the past one quarter. The stock hit a high of Rs 4,491.95 and a low of Rs 4,405 so far during the day. The stock hit a record high of Rs 4,789 on 23 November 2015. The stock hit a 52-week low of Rs 3,202.10 on 29 February 2016. The stock had outperformed the market over the past one month till 14 July 2016, rising 7.82% compared with 5.86% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 18.50% as against Sensex's 9.03% rise.

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

A weak yen lifts Maruti's operating profit margin. Maruti pays royalty to its Japanese parent Suzuki Motor Corporation in yen terms for some of its earlier models. Maruti has reportedly started paying royalty to its Japanese parent in rupee terms on all new models from 1 April 2016. Maruti also has an exposure to the yen to the extent it imports raw materials from Japan.

Maruti Suzuki India's net profit declined 11.7% to Rs 1133.60 crore on 12.5% growth in net sales to Rs 14929.50 crore in Q4 March 2016 over Q4 March 2015.

Maruti Suzuki India is India's biggest car maker in terms of market share. Japanese parent Suzuki Motor Corporation currently holds 56.21% stake in Maruti (as per the shareholding pattern as on 31 March 2016).

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