Maruti Suzuki India share price was down over a percent intraday on October 30. Global research firm CLSA has maintained a sell on the stock and has raised target to Rs 6,300 from Rs 5,675 per share.
The research firm is of the view that profitability improvement lagged peers with strong volume growth but a weak mix. Key positives were the commentary around the festival retails, according to a CNBC-TV18 report.
CLSA has increased FY21-23 EPS estimates by 5-10 percent adding that margin trajectory may not be in-line with volumes.
The stock was trading at Rs 7,004.05, down Rs 109.95, or 1.55 percent. It has touched an intraday high of Rs 7,106.50 and an intraday low of Rs 6,997.30.
India's largest passenger vehicle manufacturer reported one percent year-on-year growth in Q2 FY21 standalone profit on October 29. However, a 16 percent volume growth pushed revenue by 10 percent higher on a year-on-year basis (YoY).
Revenue during the quarter jumped 10.4 percent to Rs 18,744.5 crore compared to the year-ago period.
Standalone profit increased to Rs 1,371.6 crore in the quarter ended September 2020, against Rs 1,358.6 crore in the same period last year. In Q1 FY21, the company had posted a loss of Rs 249.4 crore.