ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • MSME Summit
  • Trending News
    • Viral News
    • Travel
    • People
    • Entertainment
    • Sports
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • Atal Pension Yojana rule change: Big setback for taxpayers - know how it will impact your savings
  • Home loans, EMIs to get more expensive: Now, this PSU bank hikes interest rates by .20%
  • Mask mandatory in Delhi as Covid-19 cases rise again: Check new rules and penalty
  • US inflation data: Break on 40-year peak, global markets rally - key highlights
  • Microsoft layoffs 2022: IT giant sacks around 200 more employees as recession fears rise
Read in App
Business News » India News

Modi-to-Modi-2014-to-2019 wins: This automaker more than tripled investor wealth - You can buy it still, gains in offing say experts

Yes, general elections in India do create a gateway for placing bets in making short and long term gains in kitty.  

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Modi-to-Modi-2014-to-2019 wins: This automaker more than tripled investor wealth - You can buy it still, gains in offing say experts
The highest level Maruti witnessed was last year in July, 2018. Photo: Reuters

Following the ups and downs of the Lok Sabha Elections 2019 today, the share price of automaker Maruti Suzuki finished at Rs 6,932.80 per piece, up by Rs 28.20 or 0.42% - the stock did touch an intraday high of Rs 7,049.90 per piece. However, a lot has changed since the last election, especially on Dalal Street. Elections do create a gateway for placing bets in making short and longer term gains in your kitty. Interestingly, such a performance has been given by Maruti Suzuki as well stretched over the 5-year Modi government term all the way to the latest victory at the hustings. In five years, definitely this automaker has made many investors richer than before. Prime Minister Narendra Modi will soon be taking his second-consecutive oath to lead India for another 5 years. 

The highest level Maruti witnessed was last year in July, 2018, where the stock rocketed to a new high of Rs 9,922.85 per piece. The 2014 election poll was was on May 16, 2014. If we compare Maruti’s all-time high from previous election counting day, i.e May 16, 2014, then the company’s shares jumped a breathtaking Rs 7,768 or 360.57%. Then the stock was near Rs 2,154-mark. 

However, since last year the share price of Maruti has seen significant change especially during bearish market sentiments in mid-September 2018. Still, the investors who bought shares of Maruti back in May 2014, stand richer by quite a margin because of its stellar performance. On current market price, Maruti has given 227.22% return in a span of 5 years. 

Guess what! You can still continue to  buy Maruti shares.

Earlier, Mitul Shah, Research Analyst at Reliance Securities said, “MSIL had been banking on success of its new launches. Recently, its volume was impacted by phasing out of the old Alto, initial competitive impact of new XUV300 launch, higher inventory and rural slowdown. However, company has launched its BS-6 products starting with new Alto at affordable pricing. We believe that its BS-6 products would be most competitively priced with better technology. We believe that the industry demand situation may remain low in 1HFY20, while it would bounce back in 2HFY20. BS-6 products would help company to gain further market shares 2HFY20 onwards. We believe that the Company’s cost control measures and overall inventory reduction at industry level would result in lower discounts and bring back pricing power for the PV makers, going forward. This would help MSIL in reaching closer to its average EBIDTA margins ~14% going forward.”

Looking ahead, Shah said, “We expect MSIL’s volume to clock ~8% CAGR over FY19-FY21E. Company’s BS-VI pricing appears lower than expectation, accordingly, we lower our revenues and also lower our margin estimates due to margin pressure. We cut our EPS estimates by 10% and 7% for FY20E and FY21E respectively. In view of better visibility on company’s BS-VI products and its affordable incremental pricing, we expect market share gain and margin improvement for MSIL going forward. Therefore, we increase our valuation multiple for MSIL from 21x to 22x. We reiterate our BUY recommendation on the stock with a revised Target Price of Rs 7,570 (from Rs 7,750 earlier), valuing the stock at 22x FY21E EPS.”

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Narendra Modibjp partyLok Sabha Election 2019lok sabha election resultsMaruti SuzukiMaruti Suzuki share priceMarkets
Written By: ZeeBiz WebTeam
Updated: Thu, May 23, 2019
08:17 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Har Ghar Tiranga Certificate Download: easy steps to download; celebration dates, objective and much more Har Ghar Tiranga Certificate Download: easy steps to download; celebration dates, objective and much more
India expanding strategic petroleum reserves, diversifying its oil import sources: S&P India expanding strategic petroleum reserves, diversifying its oil import sources: S&P
PM Narendra Modi to chair NITI Aayog governing council meeting on Sunday PM Narendra Modi to chair NITI Aayog governing council meeting on Sunday
Reduce personal income tax to spur economic activities - CII urges Modi government Reduce personal income tax to spur economic activities - CII urges Modi government
CWG 2022: Historic GOLD win! PM Narendra Modi lauds Indian lawn bowls team CWG 2022: Historic GOLD win! PM Narendra Modi lauds Indian lawn bowls team

LATEST NEWS

Eicher Motors quarterly results impact on share price: Stock hits new 52-week high on steady Q1 earnings; Buy, Sell or Hold – brokerages recommend this

Bata India Q1 result: Profit rises 72% as shoemaker logs highest ever quarterly sales

Delhivery share price falls almost 14% in 3 straight sessions amid poor Q1 show – know what brokerage says

Apple iPhone 14 Pro Max, iPhone 14 Pro likely to be expensive than iPhone 13 Pro models - All you need to know

International jewellery show to generate Rs 50,000 crore biz in 4-6 months: GJEPC

Government reappoints four independent directors on central board of RBI

Instagram users ALERT! Are you being tracked by Meta-owned platform?

Rakesh Jhunjhunwala portfolio stock: This Tata Group company's share hits 5-month high – brokerages recommend this

Next Bank Holiday August 2022: Independence Day on Monday; here is a full list of holidays this month in major Indian cities

Atal Pension Yojana rule change: Big setback for taxpayers - know how it will impact your savings

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV