Maruti Suzuki share price hits fresh record high, up 16% in six months; should you buy?
₹1,0216.65 in intraday trade on BSE on September 1. The stock opened at ₹10,000 against the previous close of ₹10,007.10 but soon gained traction to rise to an all-time high. Around 1 pm, the stock was up 1.43 per cent at ₹10,150.05 on BSE.
On a monthly basis, the stock has been in the green since April this year. In the last six months, this heavyweight stock has gained nearly 16 per cent against a nearly 10 per cent gain in the equity benchmark Sensex. The stock has been enjoying a bullish run in the recent past primarily because of its robust June quarter numbers, optimism over the company's growth outlook and improved sentiment for the automobile sectors.
In a BSE filing on Friday (September 1), Maruti Suzuki said it sold a total of 189,082 units in August 2023, which is its highest-ever monthly sales volume. "Total sales in the month include domestic sales of 158,678 units, sales to other OEMs (original equipment manufacturers) of 5,790 units and exports of 24,614 units," said Maruti. Meanwhile, Maruti Chairman R.C.
Bhargava said last Tuesday that the company will also be investing ₹45,000 crore to double its production capacity from the existing 2.25 million units to 4 million units in the next seven years. Read more: Maruti to invest ₹45,000 cr to double capacity by FY31 Maruti Suzuki’s Q1FY24 standalone net profit jumped by a robust 145 per cent to ₹2,485.1 crore as compared to ₹1,012.8 crore in the same quarter last year. This was on account of larger sales volume, improved realization, cost reduction efforts and higher non-operating income.
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