Shares of Maruti Suzuki India Ltd surged over 4% in Thursday’s trading session, hitting an intraday high of Rs 11,675 on the Bombay Stock Exchange (BSE).
At 12:04 pm, the stock was trading 4.01% higher at Rs 11,671.55 on BSE, with a market capitalisation of Rs 3.67 lakh crore. This marks a significant rally, as the stock has climbed over 6% in the past two days, buoyed by robust sales figures and positive market sentiment.
WHAT BEHIND TODAY’S RALLY?
December 2024 proved to be a strong month for Maruti Suzuki, as total sales rose 29.5% year-on-year (YoY) to 1,78,248 units compared to 1,37,551 units in December 2023.
Passenger vehicle (PV) sales increased 28.6% to 62,788 units from 48,787 units during the same period. Domestic PV sales also witnessed a 24% growth, reaching 1,30,117 units compared to 1,04,778 units a year earlier.
The company’s total production, including passenger and light commercial vehicles, surged 30.15% YoY to 1,55,553 units in December 2024. Additionally, Maruti reported a 10% YoY rise in total sales in November, with 1,81,531 units sold.
Despite mixed performance in different segments, Maruti Suzuki has maintained its dominance in the Indian automobile market.
Sales in the mini-segment, including models like Alto and S-Presso, stood at 9,750 units in November 2024, slightly lower than the 9,959 units sold in November 2023. Compact car sales, comprising popular models like Baleno, Swift, and WagonR, declined to 61,373 units from 64,679 units during the same period.
Global brokerage Citi continues to back Maruti Suzuki, maintaining a ‘Buy’ rating with a target price of Rs 13,500 per share.
In the past year, Maruti Suzuki shares have gained 10%, outpacing the Sensex, which rose 9.2% during the same period. Investors remain optimistic about the company’s long-term growth, supported by its strong sales performance and brand legacy.