Maruti Suzuki shares hit record high on capacity expansion, stock up 25% YTD; here's what analysts say

Shares of Maruti Suzuki India Ltd continued their strong upward move in Tuesday's trade. The stock rose 0.82 per cent to hit an all-time high of Rs 12,954.75. It was last seen 0.47 per cent higher at Rs 12,909. At this price, the scrip has gained 25.55 per cent on a year-to-date (YTD) basis.

The carmaker said it has commissioned another vehicle assembly line at its Manesar facility. "This assembly line has been added to the existing Plant-A of the 3 manufacturing plants at Manesar. The new vehicle assembly line has the capability to manufacture 1,00,000 units per annum. With this additional assembly line, the total manufacturing capability at Manesar stands at 9,00,000 vehicles per annum," Maruti stated.

On technical setup, immediate support on the counter could be seen at Rs 12,750. Analysts largely suggested the stock looked 'bullish' on daily charts. Although, one of them recommeded booking profits at current levels.

The overall target for Maruti shares is Rs 13,000, Avani Bhatt, Senior Vice-President, Equity Derivatives Research at JM Financial, told Business Today TV. One can consider entering the stock around Rs 12,575-Rs 12,600 levels, she added.

"Maruti is in a secular uptrend hovering at record highs. A series of support can be seen around Rs 12,400-12,200 levels, followed by sacrosanct support of Rs 11,800, which is likely to cushion any correction that might be seen after the stellar rally. The counter has turned overbought and one needs to maintain a pragmatic approach with bullish biases for the time being," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

"The stock looked strong on daily charts. It may hit an upside target of Rs 13,500 in the near term. Keep stop loss placed at Rs 12,750," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.

Maruti Suzuki is bullish but also very overbought on daily charts with next resistance at Rs 13,270, said AR Ramachandran from Tips2trades. Investors should keep booking profits as a daily close below support of Rs 12,660 could lead to a downward target of Rs 11,655 in the near term, Ramachandran mentioned.