Maruti Suzuki shares rallied 3 per cent to touch a record high on Wednesday after Credit Suisse increased its target price to Rs 5,100 from Rs 4,370 earlier and maintained the outperform rating on it.
At 1.15 pm, company’s shares were up 3.18 per cent on BSE at Rs 4177.65. On NSE, the share was up 3.13 per cent at Rs 4177.50.
Brokerage Credit Suisse has also increased Maruti’s domestic volume growth estimate for FY17 to 23 per cent from 17 per cent. It also added that the Maruti cars may see higher sales with the expected hike in salaries of government employees based on the recommendations of the 7th Pay Commission. About 25 per cent of central government and 20 per cent of state government employees will become eligible car buyers, making about 3 million employees target customers for Maruti, Credit Suisse said.
Maruti Suzuki India (MSI) reported 1.8 per cent rise in total sales in June at 1,14,756 units as against 1,12,773 in June 2014.
The BSE Sensex was trading 218.23 points up at 28,151.13 at 1.32 pm.
With Reuters inputs