Get rich stock: Maruti Suzuki share price to rise 21 pct by next Diwali, say experts
Maruti Suzuki Share Price: Post-Diwali 2019 profit booking, the auto counter is expected to shoot from Rs 7,000 to Rs 8,500 levels by Diwali 2020, say experts.
Maruti Suzuki Share Price: According to the stock market experts, Maruti Suzuki is expected to showcase a sharp rise in post-profit booking after Diwali 2019. They are advising share market investors to buy Maruti Suzuki share price at around Rs 7,000 for the target of Rs 8,500 levels in one-year time frame. Maruti Suzuki share price today is oscillating around Rs 7,435 per stock level.
Notably, net realizations of Maruti Suzuki increased by 9.5 per cent YoY to Rs 5,02,000 in Q2FY20, driven by compliance-related price increases. Discounts were up 100bp YoY at Rs 25.8k. Revenue declined 24 per cent YoY to Rs 169.8b. EBIT margin shrank 730bp YoY to 4 per cent but was above estimate of 1.5 per cent on account of initiatives to reduce RM and other expenses, says Motilal Oswal. PBT was down 48 per cent YoY to Rs 15.7b, while the PAT decline was restricted to 35 per cent owing to lower tax.
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In a detailed research report Brokerage firm Motilal Oswal says, "Maruti Suzuki's retails declined 22 per cent YoY; however, Navratras retails grew in low-single-digit and the momentum has continued thereafter. Rural decline of 18 per cent in H1-2019 was lower than the urban decline. Inventory at 30-32 days at dealer level and 50k units at the factory level. S-Presso bookings were at around 16.5k. It expects some benefit of commodity prices in 2HFY20. Capex guidance maintained at around Rs 40b."
Source: Maruti Suzuku
On asked about the suggestion to the share market investors in regard to the Maruti Suzuki share price Simi Bhaumik, a SEBI registered technical equity analyst said, "Maruti Suzuki share price is expected to witness some profit booking post-Diwali 2019 and it may come down toward the level of Rs 7,000 per stock levels in few coming trade sessions. I advise stock market investors to take a buy position in the auto counter at around Rs 7,000 and hold it for one year. By Diwali 2020, I am expecting Maruti Suzuki shares around Rs 8000 to Rs 8,500 per stock levels."
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