Maruti Suzuki's share is continuously rising, closing at a record high for the 17th time on September 24th, reaching ₹16,375. In one month, the share has climbed 32%, and annually, it has risen 50%. GST cuts, increased demand during festivals, and upgraded ratings from brokerage firms have strengthened this rally.
Maruti Suzuki Share: The share of India's largest car manufacturer, Maruti Suzuki, jumped almost 2% on Wednesday, September 24th, reaching ₹16,375, marking its 17th record high in the past month. This surge in the company's share price is attributed to GST rate cuts, robust demand during the festive season, and increased target prices by global brokerage firms. Goldman Sachs, Morgan Stanley, and other brokerages have given positive ratings on the stock. Furthermore, record-level bookings and deliveries during Navratri have further boosted investor confidence.
GST Cuts and Surging Demand Boost Share Price
Recent GST rate cuts in the auto sector have given a new impetus to Maruti Suzuki's shares. The reduction in prices of entry-level cars has led to increased demand. As the festive season begins, the demand for the company's vehicles has further accelerated. This is why investors in the stock market are focusing on Maruti Suzuki.
Brokerage Firms' Confidence Grows
A significant reason for the rally in Maruti Suzuki's shares is the positive ratings from major brokerage firms. Goldman Sachs upgraded the company's rating from ‘Neutral’ to ‘Buy’. Concurrently, the target price has been raised from ₹13,800 to ₹18,900. The brokerage believes that demand for small cars will further increase following GST cuts and price adjustments.
Support from Morgan Stanley and Other Brokerages
Morgan Stanley has maintained its ‘Overweight’ rating for Maruti Suzuki and set a target price of ₹18,360. Bank of America has increased the target price to ₹17,000. Meanwhile, Citi Group and HSBC have issued new target prices of ₹17,500 and ₹17,000, respectively. These projections clearly indicate that global brokerage houses are optimistic about the company's long-term growth.
Share Price Rises for Eight Consecutive Weeks
Maruti Suzuki's shares have been continuously rising for the past eight weeks. During this period, the company's shares have seen a 32% increase. On an annual basis, the company's share has jumped by as much as 50%. This performance keeps Maruti Suzuki at the top of the auto sector.
Festive Season Proves to be a Game-Changer
The festive season has further boosted demand for Maruti Suzuki. On the first Sunday of Navratri alone, the company received 80,000 customer inquiries and delivered approximately 30,000 vehicles. This figure is reported as the best start to Navratri in the last 35 years.
Tremendous Surge in Bookings
Following the implementation of GST amendments on September 18th, prices of Maruti Suzuki cars decreased. Since then, the company has received over 75,000 new bookings. On average, the company is receiving 15,000 bookings daily, which is approximately 50% higher than on normal days.
Investor Enthusiasm Continues
Enthusiasm for Maruti Suzuki remains high among investors. The company's sales and booking figures are instilling b confidence in the market. This is why, despite every increase, investor interest in this stock persists.
