Rising for the third straight day, shares of Maruti Suzuki India rose over one percent on Monday as the company announced a price hike for select models to mitigate the damage caused due to commodity inflation.
The price hike is effective from today.
“The weighted average price increase in ex-showroom prices (Delhi) across select models is 1.9 percent,” the automobile major said in a regulatory filing.
At 1246 IST, shares of Maruti Suzuki India were up 0.4 percent at Rs 6,892.90 on the BSE. They hit an intraday high at Rs 6,954.60.
Also Read | Stock Market LIVE Updates: Sensex, Nifty50 off record highs; Reliance Industries gains 2%
The stock has gained nearly 22 percent so far in 2021.
Emkay Global Financial Services had said that the long-term outlook for the company is positive and expects Maruti Suzuki India to clock a compounded annual growth rate of 20 percent during FY22-24.
Some analysts believe the stock has the potential to gain more in the coming days.
“If the stock closes above Rs 6,950 today, it could gain further up to Rs 7,500 in the near-term and could also rally up to Rs 9,000 in the long run,” said Kkunal Parar, Vice President, Research at Choice Broking.
The automobile major is likely to benefit from the buoyant demand for passenger vehicles, driven by rising offtake in tier-2 and tier-3 cities and rural areas, Sharekhan said in its latest brokerage note.
Additionally, a strong product portfolio and market position, brand appeal and ability to frequently launch new models could help Maruti Suzuki defend its market share despite rising competition in the compact SUV segment, Sharekhan added.
The carmaker posted total sales of 130,699 units in August 2021, registering a growth of 4.8 percent as compared to 124,624 units sold in the same month last year.
Sales volume of the company in August 2021 was affected due to electronic components shortage, it had said in its regulatory filing last week.