Automobile Major Maruti Suzuki is set to announce its second-quarter results on Thursday. The stock is up almost 40 percent from the August lows. It is now less than 10 percent away from its 52-week high. However, the September quarter is unlikely to be good for the company due to weak demand, high inventory, record-high discounts, etc.
Here's what to expect from the company:
- The revenue is expected to fall 24 percent to Rs 16,760 crore.
- The EBITDA is likely to fall by about 50 percent.
- The profit is expected to fall by about 60 percent.
- Price hikes were undertaken by the company because of which realisations will be higher by about 5 percent.
- The margins will contract because of the high amount of discounts that the company has undertaken.
- The fixed cost has also gone up because of the new Gujarat plant where the volumes were on the lower side.
- The stock is still at par with its historic valuation, so there is more legroom on the upside if there is a positive surprise.