Why Maruti Suzuki Surged To An All-Time High Today

Shares of Maruti Suzuki surged on Wednesday to end the session nearly 3% higher and just short of the ₹12,000 mark, buoyed by upbeat commentary from a global brokerage.

What Happened: According to a recent report by brokerage firm CLSA, Maruti is poised to maintain its leadership position in the CNG personal vehicle (PV) segment, boasting a 72% share.

CLSA also predicts that Maruti Suzuki and Tata Motors will benefit from the growing demand for compressed natural gas (CNG) passenger vehicles. The brokerage firm estimates that the market share of CNG PVs will rise from 15% in FY2024 to 22% in FY2030, driven by the lower operating costs of CNG vehicles.

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Recent Financials: Maruti Suzuki reported a net profit of ₹3,130 crore in Q3FY24, marking a significant 33% year-on-year increase. Revenue for the same period surged by 15% to ₹33,309.7 crore from ₹29,044.3 crore in the previous fiscal.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) for Q3FY24 rose by 38% year-on-year to ₹3,909 crore from ₹2,833 crore in the previous fiscal.

In terms of sales performance, Maruti Suzuki sold a total of 4,65,911 vehicles during Q3, reflecting an 8.2% year-on-year increase. Domestic sales accounted for 4.04 lakh units, while exports stood at 61,982 units.

Over the past six months, Maruti Suzuki’s stock has seen a 15% increase, while the year-to-date rise stands at around 46%.

Price Action: Maruti Suzuki’s share price ended 2.83% higher at ₹11,925.25 on Wednesday.

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