Maruti Suzuki hits record high after brokerage maintains buy rating

Maruti Suzuki India rose 1.54% to Rs 5,420.05 at 12:05 IST on BSE on reports a foreign brokerage has maintained "buy" rating on the stock.

Meanwhile, the BSE Sensex was up 63.89 points, or 0.22%, to 28,990.25.

On BSE, so far 38,000 shares were traded in the counter, compared with average daily volume of 74,750 shares in the past one quarter. The stock hit a high of Rs 5,448.90 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 5,316.05 so far during the day. 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 30 days till 7 September 2016, 7.44% compared with 3% rise in the Sensex. The scrip had also outperformed the market in past one quarter, 28.04% as against Sensex's 8.08% rise.

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

The brokerage reportedly stated that potential for discounts on the company's vehicles will narrow sharply going ahead. The company's improved positive free cash flow outlook is positive for the stock, it reportedly said.

Maruti Suzuki India's net profit rose 23% to Rs 1486.20 crore on 12.1% rise in net sales to Rs 14654.50 crore in Q1 June 2016 over Q1 June 2015.

Maruti 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 30 June 2016).

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