India’s best auto stock’s journey from Rs 1,000 to Rs 10,000

By: |
Updated: December 20, 2017 3:36:57 PM

Shares of India’s largest car-maker Maruti Suzuki India kissed the five-digit mark of Rs 10,000 for the first time in today. We take a look at the journey of the share price from Rs 1,000 to Rs 10,000.

Maruti Suzuki India shares have had a dream run at the bourses so far, returning more than 85% since January. (Image: Reuters)

Shares of India’s largest car-maker Maruti Suzuki India kissed the five-digit mark of Rs 10,000 for the first time today. Maruti Suzuki shares rose 2% in the morning trade to touch a high of exact Rs 10,000 on BSE before sliding back about a 100 rupees. The shares were trading up 0.7% at Rs 9,881 at the time of writing this piece. Maruti Suzuki shares have had a dream run at the bourses so far this year, returning more than 85% since January. Maruti Suzuki India overtook SBI, to become India’s sixth most valued company earlier this month, given the recent rally in share prices. The company currently commands a market capitalisation of 2.99 lakh crore as compared to SBI’s mcap of 2.73 lakh crore.

The marked out-performance of the shares has led many top fund managers to remark to say that Maruti Suzuki India shares is one of the best performing auto stocks globally.  In an interview to CNBC TV18, Nilesh Shah, Managing Director of Kotak AMC said that in his recent visit to Japan, he used Maruti Suzuki’s rise to explain India’s potential.

Also read: Maruti Suzuki India shares a favourite among global brokerages

“I carried just one chart with me, and said, I can explain India in hundred slides or I can explain India in one slide. I compared Maruti Suzuki India’s performance with Honda, Toyota, Nissan, General Motors, Ford and all the listed companies, and said that look, the world’s best performing automobile stock is in the Indian market, and this is how Suzuki has made money in India. Surprisingly, they were not aware of this story and they all lapped it up,” he told the channel. We take a look at the journey of the share price from Rs 1,000 to Rs 10,000.  The graph below captures Maruti Suzuki India shares’ journey from Rs 1,000 to Rs 10,000. The month-end share price data has been taken from BSE.

The shares had crossed the Rs 1,000 mark a decade ago in October-07. According to month-end shares prices taken from BSE, it took more than 7 years for the shares to move above the Rs 2,000 mark, as the shares closed at Rs 2,269 as at the end of May-14. The shares soon surged to move past the Rs 3,000 figure in the same, year, as the share price shattered the Rs 3,000 mark. The shares continued to rise steadily, and move past the Rs 4,000, Rs 5,000 and Rs 6,000 in June-15, August-16 and March-17 respectively.

Track live stock price: Maruti Suzuki India

Most notably, 2017 has been an excellent year for the investors, as the shares have moved past the Rs 7,000, Rs 8,000 and Rs 9,000 mark in very quick succession in the year. As at the end of March-17, the shares closed at Rs 6,064. It surged past the Rs 7,000 figure in just two months, and closed at Rs 7,214 as at the end of May-17. In October the shares rallied past the Rs 8,000 mark to close at Rs 8,217 on the date. However, it’s the period beyond October, that has seen a remarkable rise. The shares zoomed past the Rs 9,000 mark just ten days ago, and have risen more than Rs 1,000 to hit the magical five-digit figure.

While investors may be wondering to buy the shares at such life-high levels,  three large global brokerages Morgan Stanley, Citi and CLSA have a buy on the shares. Latest to reitierate its bullishness on the shares is Kotak Secuirites. “Maruti Suzuki is likely to enjoy a golden run over the next three to five years with limited competition, stable industry growth and as it benefits from the change in emission norms to BS-VI from BS-IV. We expect the company’s EBITDA margin to surpass historical peaks due to limited capacity and limited competition,” said Kotak Institutional Equities said in a note today.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1HDFC to raise Rs 13,000 cr, invest up to Rs 8,500 cr in banking arm
2Markets hit fresh closing highs, auto stocks rally
3Removal of inventory limits boosts sugar stocks