Maruti Suzuki Shares Hit 52-Week High; Scrip Gains 11% In 3 Days

Shares of Maruti Suzuki in intra-day trade on Wednesday (November 17, 2021) hit 52-week high price of Rs. 8350 apiece on the NSE. On the BSE, the scrip is still trading close to its 52-week high price of Rs. 8400 scaled on January 13, 2021. The scrip has been trading higher for the fourth straight session.

Maruti Suzuki Shares Hit 52-Week High; Scrip Gains 11% In 3 Days

The surge in the stock price is on the back of reports that the auto major has received state government's approval to set up its third passenger vehicle manufacturing facility in Sonipat district of Haryana.

The company already runs 2 manufacturing units in Haryana with a total annual capacity of 1.5 million units that along with Gujarat-based Suzuki's facility takes the company's effective annual capacity to 2.25 million units. This is amid around 1.82 million units of sales volume that we expect for MSIL for FY23E, ICICI Securities said in a note. "We are little surprised by the location of the new plant as it is far off from its existing belt in the state i.e. Gurugam, Manesar. We await official communication from the company on the same," the brokerage firm said.

For the October month, the company's total sales were at 1,38,335 units. Total sales in the month include domestic sales of 112,788 units, sales to other OEM of 4,225 units and its highest ever monthly exports of 21,322 units, noted the brokerage. "While the shortage of electronic components continued to affect the production of vehicles during the month, the Company took all possible measures to minimise the impact. Accordingly, the Company sold more vehicles than the sales volume expected at the start of the month, said the company.

Analysts at Prabhudas Lilladher is of the view that the company will capitalize on the growing preference for personal mobility solution and demand for CNG vehicles. In the future course, new product launches and the company's ability to pass on price in the competitive landscape holds the key.

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