Shares of this large cap automobile company rose by 1.47 percent after the company plans to proceed with its proposed acquisition of a manufacturing plant in gujarat.
At 10.57, 10th October shares of Maruti Suzuki Ltd were trading at Rs. 10,395 per share up by 1.47 percent from previous closing price of Rs. 10,244 per share.
Such bullish stock price movements were observed after the company shared a presentation on its plan to acquire 100 percent stake in Suzuki Motor Gujarat. The company announced in the beginning of this financial year that they are going to acquire Suzuki Motors Gujarat from Japan-based parent Suzuki Motor Corporation before 31st March, 2024.
The company in the presentation also said Maruti Suzuki India will pay for the shares held by Suzuki Motor Corporation by making preferential issue of MSIL equity shares.
Moreover, the company said they will require about Rs. 45,000 crores to create a capacity of 2 million units. Company will also need capex for development of 10-11 new models with different fuel options. Amount for capex in 2022-23 was around Rs. 7,500 crores. Total capex till 2030-31 could be as much as Rs. 1.25 lakh crores.
Looking at the financial statements, the company’s revenue increased by 21.98 percent to 32,338 crores in Q1FY24 from 26,511 crores in Q1FY23. In the same time period net profit increased by 143.7 percent to 2,525 crores from 1,036 crores.
Talking about the financial ratios, the company reported return on equity (ROE) of 14.02 percent and return on capital employed (ROCE) of 17.7 percent in the last financial year.
Maruti Suzuki Ltd is the largest passenger car manufacturer in India. The company has more than 40 percent market share in India’s passenger car market. They have 17 different models out of which Maruti suzuki swift and Maruti suzuki baleno are amongst the top selling Models.
Written by: Vinit Israni
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