Maruti turns volatile after announcing recall of Baleno and DZire cars

Maruti Suzuki India rose 0.47% to Rs 4,136.30 at 11:40 IST on BSE, with the stock turning volatile after the firm said it will proactively and voluntarily recall Baleno cars and DZire diesel cars for inspection and replacement of a faulty fuel filter

The announcement was made during market hours today, 27 May 2016.

Meanwhile, the S&P BSE Sensex was up 181.07 points or 0.69% at 26,547.75.

On BSE, so far 32,000 shares were traded in the counnter as against average daily volume of 84,830 shares in the past one quarter. The stock was volatile. The stock rose as much as 0.92% at the day's high of Rs 4,155.10 so far during the day. The stock lost as much as 0.58% at the day's low of Rs 4,093 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 stock had outperformed the market over the past one month till 26 May 2016, advancing 6.4% compared with Sensex's 1.38% rise. The scrip had also outperformed the market in past one quarter, surging 20.77% as against Sensex's 13.87% rise.

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

Maruti Suzuki India (MSIL) said it will proactively and voluntarily recall 75,419 Baleno cars (petrol and diesel), manufactured between 3 August 2015 and 17 May 2016 to upgrade the airbag controller software. Of these, 15,995 Baleno cars (only diesel), manufactured between 3 August 2015 and 22 March 2016, will also be attended to for inspection and replacement of a faulty fuel filter. The Baleno cars covered in the recall include 17,231 units of exports, MSIL said.

In addition, 1,961 DZire diesel cars (only AGS variant) will be attended to for inspection and replacement of a faulty fuel filter, MSIL said in a statement.

Starting 31 May 2016, owners of the vehicles covered will be contacted by Maruti dealers, the company said. The software upgrade and the replacement of faulty fuel filter, will be done free of cost, MSIL said.

Maruti'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.

Japanese parent Suzuki Motor Corporation held 56.21% stake in Maruti Suzuki India (as per the shareholding pattern as on 31 March 2016).

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