The stock rose more than 3% on Wednesday to hit a new all-time high. The shares crossed ₹10,000 apiece for the first time in a choppy trading session. On Wednesday, Maruti announced the launch of Invicto, a seven-seater upscale people mover (or multi-purpose vehicle). The vehicle is priced in the vicinity of ₹25 lakh.
On Wednesday, Maruti Suzuki topped ₹10,036.95 on the NSE before ending at ₹9,990.10, up 3.55% from the previous close. Nearly a million shares exchanged hands on the BSE and NSE, more than twice its combined daily average volume for the last one month.
Recent launches have helped the company gain market share, while margins have recovered to double-digits after ten quarters, fuelling investor appetite for the stock, analysts said.
“The stock is playing a catch-up rally,” said Pankaj Pandey, head of research, ICICI Securities. “The company is seeing recovery in margins supported by cooling off in commodity and raw material prices. New product launches are also seeing good traction.” ICICI Securities has a buy rating on the stock with a target price of ₹11,000 – implying another 10.11% upside from the current levels. The stock was the top gainer among the frontline stocks on Wednesday, helping the Nifty Auto index jump 1.64%. Since the start of the calendar 2023, Maruti shares have risen nearly 19%. Its market capitalisation has now crossed ₹3 lakh crore, making it the 17th most valuable listed company, exchange data showed. “First quarter earnings will give fresh triggers to the stock. The company has been gaining share in the SUV segment,” said Deepak Jasani, head, retail research, HDFC Securities.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
