Maruti Suzuki shares gain after price hike comes into effect from today

Shares of Maruti Suzuki India Ltd rose over a percent today after a price hike announced in November 2023 became effective from today across all models. Maruti Suzuki stock rose 1.53% intraday to Rs 10,241.15 against the previous close of Rs 10,086.45 on BSE. Total 0.16 lakh shares of the firm changed hands amounting to a turnover of Rs 16.03 crore. Market cap of Maruti Suzuki rose to Rs 3.20 lakh crore on BSE.

In a year, the stock rose 21.35% and gained 26% in two years.

The company raised prices citing increased cost pressure driven by overall inflation and increased commodity prices. "While the Company makes maximum efforts to reduce cost and offset the increase, it may have to pass on some increase to the market," it had said.

Maruti Suzuki shares have a one-year beta of 0.2, indicating very low volatility during the period. In terms of technicals, the relative strength index (RSI) of Maruti Suzuki stands at 43.8, signaling it's trading neither in the overbought nor in the oversold zone.

Maruti Suzuki shares are trading higher than the 5 day, 10 day, 20 day, 150 day and 200 day but lower than the 30 day, 50 day and 100 day moving averages.

“The estimated weighted average increase across its models stood at around 0.45 per cent, an indicative figure calculated using ex-showroom prices of models in the national capital,” said Maruti Suzuki India in a communication to exchanges.

Maruti Suzuki reported its highest-ever quarterly sale volume, net sales and net profit in the September 2023 quarter. The largest carmaker in India said its profit for the quarter rose 80.3 per cent year-on-year (YoY) to Rs 3,716.5 crore compared with Rs 2,061.5 crore in the corresponding quarter last year.

The company is yet announce its earnings for the quarter ended December 2023.

Maruti Suzuki India is likely to post a 14.2 per cent year-on-year rise in revenue for the October-December period, led by improved volumes and higher realisations owing to price hikes and a richer product mix, said brokerage Prabhudas Lilladher.

Prabhudas Lilladher sees the auto major's net profit rising 35.6 per cent and EBITDA margin climbing 122 basis points compared with the year-ago period.

It has a 'buy' rating on Maruti Suzuki with a target of Rs 12,100 per share.

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