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Maruti Suzuki shares slip 2% ahead of Q4 earnings

Maruti Suzuki has gone for a price hike twice this year. The latest was announced on April 10

April 26, 2024 / 14:25 IST
The Maruti stock has rallied over 24 percent since January this year, outperforming Nifty’s 3 percent gain.
     
     
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    The Maruti Suzuki India Limited fell 2 percent in the afternoon trade on April 26, ahead of its fourth quarter result announcement later in the day.

    India's largest car manufacturer is expected to report a net profit rise of Rs 3,916 crore, up almost 50 percent from the year-ago period, a Moneycontrol poll of nine brokerages has estimated. Revenue is expected to jump 21 percent to Rs 38,772 crore.

    "The rise in revenue (would be) led by higher overall unit sales, better product mix, a higher proportion of SUV and export sales," Axis Securities said in a note.

    Brokerages estimated that Maruti Suzuki sold 5.84 lakh cars in the January-March quarter, which is 13.4 percent more than it did in the year-ago period.

    At around 2 pm, the stock was trading at Rs 12,760, down 1.3 percent from the previous close. The stock has rallied over 24 percent since January, outperforming Nifty’s 3 percent gain.

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    The demand outlook, particularly for the entry-level segment, however, warrants close observation. Analysts anticipate a potential contraction in sales, particularly for cars such as Alto and S-Presso, with volumes possibly declining by 28 percent year-on-year.

    Compact car volumes, including those for models such as Ignis, Celerio, and Swift, may face a milder decline of 3-4 percent.

    In January, Maruti Suzuki hiked prices by up to 0.45 percent across models. On April 10, a second hike followed with the raising prices on Swift and select variants of Grand Vitara Sigma by up to Rs 25,000.

    Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

    Moneycontrol News
    first published: Apr 26, 2024 02:25 pm

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