Maruti Suzuki has left behind SBI, HDFC in market capitalization; currently sixth most valued company in India
Maruti Suzuki is certainly one of the most valued company in the country for quite long time and it is growing faster than ever, The Indo-Japanese automaker’s share price touched its all time high mark of Rs. 8,695 at BSE on last Friday and now, on 8th December, Maruti Suzuki’s stock hit a new high of Rs. 9,120 at the BSE.
Currently, the company is being considered more valued than the combined value of Mahindra, Tata Motors and Ashok Leyland. Not only that, Maruti Suzuki has been able to garner market capital of Rs. 273,106 crore, that made the brand sixth most valued company in India. Its market capital has left behind major lenders like State Bank of India, HDFC as well.
Since January this year, Maruti Suzuki’s stock surged 65%, thanks to the increasing sales and market share in Indian auto market. The company has been able to achieve this success because of its newer models like the Vitara Brezza compact SUV, Baleno premium hatchback, new generation Dzire compact sedan, facelifted S-Cross crossover, new Celerio.
Apart from the above mentioned cars, Maruti Suzuki’s upcoming models like new generation Swift hatchback, Ciaz facelift have been boosting the moral of the stock holders and garnering new stock buyers for the company. So far, it is clear, that the automaker is ready to set a new record of reaching the stock price of Rs. 10,000 soon, may be much ahead of January 2018.
Presently, India is world’s fifth largest market and every second car sold here is made by Maruti Suzuki. In FY17, Maruti’s market share stood at 47.40% and it shot up to 50% during the first seven months of FY18. Domestic sales increased by 15.52% to 957,603 vehicles in April-October period. The growth rate of the brand is double than industry’s 7.67% growth rate.
In the 2016-17 calendar year, Maruti Suzuki posted a profit of Rs. 7,337 crore that was around 37% higher compared to the profit it registered in the previous year.