- Automobile major Maruti Suzuki’s share price plunged 16.80% in the last five days. It was trading at ₹6758.55 on Monday’s early trade.
- Vinkesh Gulati, President of the Federation of Automobile Dealers Associations (FADA), believes that the Russia Ukraine conflict could have a negative impact on semiconductor output.
- The company reported a consolidated total income of ₹23581.20 crores, in the October to December quarter, up 11.99% as compared to the September quarter and down 3.61% as compared to the December quarter last year.
Automobile major Maruti Suzuki’s share price plunged 16.80% in the last five days. It was trading at ₹6758.55 on Monday’s early trade.
The volatility in the market has heightened amid soaring crude oil prices, rising inflation and geopolitical conflicts that might hamper global supply chains. Market volatility index India VIX has risen by 40.84% in the past month. It has neared 30 point levels and this suggests panic amongst investors.
Indian equity benchmarks dived amid the war between Russia and Ukraine. The BSE Sensex was down 1655 points while the NSE nifty7 was down 474 points. The Nifty auto was down 448 points, and Maruthi Suzuki India was the top loser as its share price nosedived 6%.
Maruti Suzuki reported a marginal drop in total wholesales in February 2022. “The shortage of electronic components had a minor impact on the production of vehicles which are primarily sold in the domestic market. The company took all possible measures to minimize the impact,” it said.
Vinkesh Gulati, President of the Federation of Automobile Dealers Associations (FADA), believes that the Russia Ukraine conflict could have a negative impact on semiconductor output. He added that the auto body has changed its outlook on vehicle retail sales to ‘negative’ from ‘neutral’.
Financials
The company reported a consolidated total income of ₹23581.20 crores, in the October to December quarter, up 11.99% as compared to the September quarter and down 3.61% as compared to the December quarter last year.
Maruti Suzuki is a bluechip company with a market capitalization of 2.06 lakh crores. Its promoters’ holding is stable at 56.37% for the last four quarters. As of December 31, 2021, FIIs hold 23.60%, DIIs hold 15.29% and the public holds 4.74% of its shares.
What are analysts saying?
Axis Securities: March 3, 2022
“We expect gross margin to improve going forward, driven by calibrated price hikes and fall in the price of some commodities,” said analysts at Axis Securities.
They said that the stock is valued at 27x its FY24E EPS. In the past 6 months, Maruti Suzuki’s share price has gained 93.20%
Analysts at Axis Securities have given a target price of ₹9,800 on this stock.
Emkay Global: March 3, 2022
Analysts at Emkay Global have given a buy call on Maruti Suzuki with a target of ₹9,850. The time period given by the analyst is one year.
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
