Shares of India’s largest car maker Maruti Suzuki India Ltd jumped 2.11% to an all-time high of Rs9,072 apiece on 08 December 2017, making the Delhi-based automaker the sixth most valued firm on the BSE, ahead of State Bank of India (SBI). The list of the most valued companies on the BSE is led by Reliance Industries Ltd, followed by Tata Consultancy Ltd (TCS), HDFC Bank Ltd, ITC Ltd and Hindustan Unilever Ltd.
Maruti Suzuki has guided for a volume growth of 10-12% in FY18 and 12-14% in FY19. Hence, most of the brokerages have a bullish view on the stock. Also on the margin front, there is further room for improvement and the realization per unit of the company has also been improving.
Maruti Suzuki is riding a wave of an extremely successful product cycle that has seen the introduction of models such as the Baleno hatchback, Vitara Brezza SUV and the new Dzire sedan. Since July 2012, the company has gained more than 12 percentage points in market share to control more than 50% of the Indian car market, where more than 3 million cars are sold every year.