Maruti Suzuki shares vroom 6% in two day; here's what's boosting rally

Maruti Suzuki, manufacturer of Baleno, Celerio, Dzire, Ignis, Swift, Tour S and WagonR, shares gained 3.1 per cent in trade on BSE logging an intraday high at Rs 11,570.9 per share. The scrip has advanced over 6 per cent in two days boosted by positive sentiments surrounding strong sales numbers.

 

Around 10:57 AM, Maruti share price was up 2.73 per cent at Rs 11,527.7 per share on BSE. In comparison, the BSE Sensex was up 0.78 per cent at 79,120.59. The market capitalisation of the company stood at Rs 3,62,433.86 crore. The 52-week high of the stock stood at Rs 13,675 per share and the 52-week low stood at Rs 9,738.4 per share.

 

In the month of December, Maruti Suzuki's total sales grew 29.5 per cent year-on-year (Y-o-Y) to 178,248 units as compared to 137,551 units a year ago. Its passenger vehicle (PV) sales grew 28.6 per cent to 62,788 units from 48,787 units a year ago. 

 

Its domestic PV sales in December stood at 130,117 units as compared to 104,778 units a year ago, a rise of 24 per cent. 

 

The company's total production which includes Pv and light commercial vehicles also increased Y-o-Y to 157,654 units from 121,028 units are year ago. Its total PV production rose 30.15 per cent to 1,55,553 units from 1,19,518 units a year ago. 

 

In November, Maruti Suzuki had reported a 10 per cent Y-o-Y increase in its total sales at 1,81,531 units. Total domestic passenger vehicle wholesales were at 1,41,312 units as compared with 1,34,158 units in the year-ago month, a growth of 5 per cent.

 

Sales of mini segment cars, comprising Alto and S-Presso, stood at 9,750 units as against 9,959 units in November 2023. Sales of compact cars, including Baleno, Celerio, Dzire, Ignis, Swift, Tour S and WagonR, declined to 61,373 units as compared to 64,679 units in the year-ago month. 

 

As per reports, global brokerage Citi has maintained a 'Buy' on Maruti for a target price of Rs 13,500 per share.

 

Maruti Suzuki India is one of the largest and most prominent automobile manufacturers in India. It was founded in 1981 as a joint venture between the Indian government and Suzuki Motor Corporation of Japan. The company initially started as Maruti Udyog Ltd. and was later renamed Maruti Suzuki in 2007 after Suzuki became the major stakeholder. Maruti Suzuki is known for producing a wide range of vehicles, including hatchbacks, sedans, SUVs, and MPVs, and has become synonymous with affordable and reliable cars in India.

 

In the past one year, Maruti Suzuki shares have gained 10 per cent against Sensex's rise of 9.2 per cent.