Maruti Suzuki stock races past Rs 12,000 mark for first time ever

Maruti Suzuki India shares jumped on Wednesday to cross the Rs 12,000 apiece mark for the first time in intraday trade. The stock of Maruti Suzuki India, the country's largest carmaker, rose as much as 3.7 per cent to touch Rs a record high of Rs 12,025 per share on BSE, taking the private sector auto giant's market value to a record Rs 3,78,069 crore, according to provisional exchange data.  

Maruti Suzuki shares have already rewarded investors with a return of 17 per cent so far in 2024 in a sharp outperformance a 0.9 per cent gain in the headline Nifty50 index. 

What has led to gains in Maruti Suzuki?

According to Zee Business research, the auto maker has continued to maintain its 40 per cent market share, and its management aims to take it to 50 per cent in the long run, aiding the positive sentiment in its stock.

An improved SUV mix is also helping the company expand its margin, according to Zee Business analysts.

The auto maker's exports have logged better-than-expected growth over time, they added. 

Outlook for Maruti Suzuki

Global brokerage CLSA is of the view that the company is emerging as the major beneficiary of the increasing demand for CNG vehicles in India. By FY30, the brokerage estimates the share of CNG PV to increase to 22 per cent from the earlier 15 per cent. In addition, CLSA estimates that in the CNG passenger vehicles segment, the company's share is expected to remain at 72 per cent.

Earlier on February 22, Citi had initiated a ‘positive watch’ period on the stock for 90 days.

Last year, the company’s chairman in its AGM said that the company plans to double its annual production capacity to 40 lakh units in eight years. Also, it aims to increase its export volumes  to three times to 8 lakh units by FY31.

Brokerage targets on Maruti Suzuki

9 brokerage houses have coverage on the company on Bloomberg.