Maruti Suzuki in top gear

Maruti Suzuki India surged 5.45% to Rs 1560.40 on BSE, extending gains for the second consecutive day, on reports demand for passenger cars remains upbeat in the domestic market.

Meanwhile, the BSE Sensex was provisionally up 183.68 points, or 1.09%, to 17,032.51.

On BSE, 3.34 lakh shares were traded in the counter as against an average daily volume of 1.68 lakh shares in the past one quarter.

The stock hit a high of Rs 1568.40 and a low of Rs 1485 so far during the day. The stock had hit a 52-week high of Rs 1740 on 30 September 2009 and a 52-week low of Rs 428.40 on 23 January 2009.

The stock has risen 9.56% in just two trading sessions from a recent low of Rs 1424.30 on 12 November 2009. The stock had declined 1.9% to Rs 1424.30 on 12 November 2009.

The large-cap stock underperformed the market over the past one month till 13 November 2009, falling 2.40% as compared to the Sensex’s 1.04% fall. It had also underperformed the market in the past one quarter, rising 7.73% as compared to the Sensex’s return of 8.57%.

The company’s equity capital is Rs 144.46 crore. Face value per share is Rs 5.

The current price of Rs 1560.40 discounts the company’s Q2 September 2009 annualized EPS of Rs 78.91 by a PE multiple of 19.77.

Maruti Suzuki India’s total sales surged 32.4% to 85,415 units in October 2009 over October 2008. Domestic sales rose 21% to 71,551 units and exports accelerated 158.5% to 13,864 units in October 2009 over October 2008.

Maruti Suzuki, on 21 August 2009, had announced that the government of Haryana allotted 700 acres of land to the company for its proposed research and development (R&D) complex in Rohtak, Haryana.

Maruti Suzuki India’s net profit surged 92.5% to Rs 570 crore on 46.6% rise in net sales to Rs 7080.67 crore in Q2 September 2009 over Q2 September 2008.

The company was cautious about the outlook, citing factors such as a rise in aluminium and steel prices and a stronger yen against the rupee, which would push up import costs.

Maruti Suzuki India is engaged in manufacturing, purchasing and selling of motor vehicles and spare parts.