Maruti Suzuki India Ltd (MSIL) is now India’s 19th listed company to cross ₹4 lakh crore market capitalisation as the company’s shares surged over 23 per cent so far in 2024. On March 27, the stock hit a record high of ₹12,725 on BSE- gaining 4 per cent.
Which other companies have achieved the milestone?
This milestone has been so far achieved by RIL, TCS, HDFC Bank, Infosys, ICICI Bank, Bharti Airtel, SBI, LIC, HUL, ITC, L&T, Bajaj Finance, Adani Energy, Adani Green, HCL Tech, Adani Enterprises, Kotak Mahindra Bank and Adani Total Gas.
How lower yen affects Maruti Suzuki?
As Japanese Yen hit a 34-year low despite country’s exit from negative interest rates, Maruti’s EBITDA could benefit by cutting costs for imported goods and services. Yen is the worst-performing major currency this quarter, down over 7% against the dollar.
What else is causing Maruti Suzuki’s growth?
Maruti Suzuki exceeded expectations in Q3FY24 as it oversaw a 33% increase in net revenue, driven by a 60% growth in the premium utility vehicle segment and robust export performance, it said.
What analysts have said on Maruti Suzuki?
Dolat Capital said in its latest note, “We expect the volume of MSIL to continue to move towards the SUV segment to catch up with further industry trends. Increase in SUV mix will continue to help in increase in ASP, service revenue and EBITDA per vehicle. Although, FY25 Industry outlook appears muted amid limited launches, we expect MSIL to outperform industry growth led by gain in market share in SUVs and strong presence in the rural market.”
Meanwhile, JM Financial noted that global electrification is moderating despite supply chain normalization and price reductions by OEMs- a trend observed in India as well.
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