Maruti Suzuki’s big milestone: 2 crore cars in just 35 years; buy shares and gain up to 21%

By: |
Published: June 4, 2018 4:49:40 PM

Maruti Suzuki's big milestone: India's largest automaker by market capitalisation Maruti Suzuki has achieved yet another feat with manufacturing 2 crore cars in less than 35 years. According to these two brokerage firms, Maruti Suzuki shares can gain up to 21% from current levels.

Photo for representational purposes only. (IImage: Reuters)

Maruti Suzuki‘s big milestone: India’s largest automaker by market capitalisation Maruti Suzuki has achieved yet another feat with manufacturing 2 crore cars in less than 35 years. The stock of Maruti Suzuki is the costliest scrips among all the listed companies (excluding auto ancillary companies) on Indian bourses — NSE and BSE. Over the course of last two years, Maruti Suzuki shares have more than doubled the investors’ money vastly outperforming the benchmark Nifty Auto index and the headline indices Sensex and Nifty.

Shares of Maruti Suzuki (India) have returned 107% to Rs 8,746 from a share price level of Rs 4,217.95 on the last 24-month period on NSE. A number of brokerage firms have been bullish on the shares of Maruti Suzuki as the auto giant is making one after other milestones in terms of sales and financial performance. Maruti Suzuki has also been very consistent in distributing dividends. As per the records available with Bombay Stock Exchange, Maruti Suzuki has been perpetually distributing dividends for the last 14 years with the latest dividend of Rs 80 per equity share which was announced along with the earnings release for the quarter and the financial year ended 31 March 2018.

Also Read | Maruti Suzuki manufacturers over 2 crore cars in India in less than 35 years! Breaks Japan’s record by a decade

The domestic research and brokerage firm Motilal Oswal Securities has given a ‘buy’ after the company released vehicle sales number for the month of May 2018. Motilal Oswal has given a target price of Rs 10,468 which implies an upside of 20% from the current market price. The stock trades at 25.1x/19.8x FY19E/20E earnings, Motilal Oswal said in a report.

On the other hand, Angel Broking has given a ‘buy’ with a target price of Rs 10,619 which implies an upside of 21% from the current levels. GST regime and the Gujarat plant are expected to improve the company’s sales volume and margins,
respectively, Angel Broking said in a research report.

Maruti Suzuki (India) is among the top 10 companies in India by market capitalisation and features way ahead of the industry peers such as Mahindra and Mahindra, Hero MotoCorp, Bajaj Auto, Tata Motors. As per Monday’s closing price of Rs 8,750.35, Maruti Suzuki (India) commands a market capitalisation of Rs 2,64,330.63 crore on BSE.

Disclaimer: Views and recommendations given in this section are the brokerage firms’ own and do not represent those of www.financialexpress.com. Please consult your financial adviser before taking any position in the stock/s mentioned.

Get live Stock Prices from BSE, NSE, US Market 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.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1PE/VC investments nearly doubled to $5.4 bn in May led by Jio Platforms deals
2Sensex snaps six-day gaining streak, Nifty holds 10,000; check what dragged markets today
3RIL share price skyrockets over 80% in less than 3 months; brokerages see buying opportunity