Maruti Suzuki extends rally, up 12% in a week

Maruti Suzuki India (MSIL) has moved up 2.3% to Rs 1,250, extending its four-day rally after reporting a better-than-expected sales volume for the month of June 2012.

Shares of India’s largest carmaker have outperformed the market, gaining 12% during the past one week, compared to a less than 3% rise in the benchmark Sensex and the auto sector index.

MSIL has reported a 20.3% year-on-year growth in total sales, at 96,597 units in June against 80,298 units sold in the same month last year. Domestic volumes have been driven by the success of the new launches, Swift, Dzire and Ertiga.

 

Meanwhile, the company informed BSE that a meeting of the board of directors of the company will be held on July 28, 2012, to consider and approve, the un-audited financial results for the quarter ended on June 30, 2012 (Q1).

According to research firm, Emkay Global Financial Services,” MSIL performance is likely to remain lackluster, led by lower volumes and high discounts. The adjusted EBITDA margins are set to decline 40 bps QoQ (270 bps YoY) led by higher input costs, adverse dollar/rupee and new launch related expenses.”