The stock was in talks after certain news
- Maruti Suzuki is currently selling ICE-powered models including hybrids and CNG in India. However, the brand is now balancing out its game by planning to launch a range of EVs as well as low-cost hybrid vehicles in the market. In coming years, Maruti will launch three electric vehicles which will include a SUV, a hatchback, and an MPV. While the electric SUV will launch in early 2025, the other two are scheduled to be launched in the next 2-3 years.
- Ahead of the launch of its first electric vehicle, a midsize SUV named Concept eVX, Maruti Suzuki India is planning to set up around 25,000 EV charging stations.
- Tata Capital has signed a Memorandum of Understanding (MoU) with Maruti Suzuki, to offer financing solutions to customers across the latter’s Arena, Nexa, commercial channel, and Maruti True Value brands.
Analysis :
- The mainstream of revenue for the Auto Sector is their sales, Maruti Suzuki has reported decent sales growth of 19.92 % and in the latest quarter, sales were Rs 35,531.40 Cr. To judge whether the company’s inventory is being sold or not and whether the sales picture is true, the inventory turnover ratio plays a major role, which is 34.80 times for Maruti Suzuki. It is managing its inventory efficiently.
- Maruti Suzuki reported Profit growth of 64.11 % over the year, where the latest year’s profit is Rs 13,209.40 Cr compared to the previous year’s Rs 8,049.20 Cr. The new permits by governments and increasing demand will lead to an increase in profits in the coming year.
- The operating profit of Maruti Suzuki in the latest quarter is Rs 4,502.30 Cr. It helps in measuring the company’s operating performance which is used to make financing decisions.
- Maruti Suzuki has an average ROE of 18.30 %. The ROE is an important financial parameter because Auto companies work with high equity investments. Also, they have to take huge debt to incur the research and manufacturing work so their Debt to Equity ratio should be evaluated. Maruti Suzuki has a low Debt to Equity ratio of 0.00.
- Maruti Suzuki pays a dividend of 125 Rs per share. It tells us that a company likes to share profits with its shareholders. The dividend yield is low at 1.01 %.
- The share of promoters in Maruti Suzuki is high at 58.19 %, where the pledging is 0 %.
- What the market is willing to pay for the company for its earnings can be determined by PE multiple. The current PE of Maruti Suzuki is 27.03 compared to the 5-year average PE of 38.73 .
The stock opened above the consolidation zone of Rs.12410-12300 and all set for the momentum towards Rs.12680. Hence, recommended ATM Call Option to capitalize more gains today.
