News India Live, Digital Desk: Shares of Maruti Suzuki: The shares of India’s largest car manufacturer Maruti Suzuki India Limited saw a decline on April 28. In fact, in January-March 2024, its standalone net profit fell from 4.3 percent to Rs 3,711 crore from year to year. This market was weak due to expectations. This is the reason that the stock declined by 3.5 percent at the start of Intrade Trading today. However, as the business day progressed, the shares started going in green.
Currently, Maruti Suzuki shares on NSE at around 02:17 pm are trading around Rs 134.10, or by Rs 1.15 per cent, to around Rs 11,820. However, brokerage firms are taking a neutral stance on this stock after the fourth quarter results.
Let us tell you that Maruti Suzuki’s standalone net profit slipped 4.30 per cent to Rs 3711.1 crore in the March quarter. However, operating revenue increased by 6.38 percent to Rs 40,673.8 crore during this period. The company’s margin also declined by 1.50 percent to 10.5 percent. While the operational profit declined by 9 percent to Rs 4264 crore during this period.
What is brokerage advice?
Nomura
Nomura has given a “natural” rating to Maruti Suzuki. Nomura says the pressure on the margin has caused a risk and will continue to monitor it. The fourth quarter margin was lower than estimated due to increase in other expenditure. The possibility of domestic development slow, export growth is 20% likely. According to the management, it is possible to increase the industry by 1-2% of the industry in FY 26. Maruti Suzuki can perform better in FY 26. This is why Nomura has given a target price of Rs 12,886 per share for this stock.
JP Morgan
Meanwhile, JP Morgan says that despite the low discount, the fourth quarter results were weaker than expected. The effect of increasing the capacity of new plants is visible due to the weak product mixture. JP Morgan further said that the rising prices of commodity and increase in advertising expenses are affecting the fourth quarter. The financial year 26 can be weak due to the capacity increase of new plants. In FY 26, there is a risk of recession in volume growth. This is the only reason that the brokerage firm has given this stock a “neutral” rating. That is why a target of Rs 12,800 has been given per share.
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