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Maruti Suzuk India has rallied over 4% to Rs 1,366 after the Japanese yen slid to a three-and-half year low which would result in lower import costs.
The yen's depreciation has a direct impact on the company's margins. Raw material imports and royalty payouts are yen-denominated and account for 23% of sales.
With Japanese yen depreciating against US dollar and Indian rupee being relatively stable against dollar, the company is likely to benefit on the imported content of raw material,” says analyst at Prabhudas Lilladher.
The stock opened at Rs 1,324 and hit a high of Rs 1,370 on BSE. A combined 444,162 million shares have changed hands on the counter so far on BSE and NSE.
The yen's depreciation has a direct impact on the company's margins. Raw material imports and royalty payouts are yen-denominated and account for 23% of sales.
With Japanese yen depreciating against US dollar and Indian rupee being relatively stable against dollar, the company is likely to benefit on the imported content of raw material,” says analyst at Prabhudas Lilladher.
The stock opened at Rs 1,324 and hit a high of Rs 1,370 on BSE. A combined 444,162 million shares have changed hands on the counter so far on BSE and NSE.
