Maruti Suzuki India Limited is India's largest automobile manufacturing enterprise in India. 56.21% of its subsidiary is owned by the Japanese automobile giant named Suzuki Motor Corporation. Maruti Suzuki India Limited has produced popular four-wheelers like Omni, Maruti 800, Baleno RS, Celerio, Swift, Wagon R, Alto, among others. With time, the company has earned the reputation of being one of the most customer-friendly four-wheeler manufacturers in the entire world.
The total market capitalisation of Maruti Suzuki Limited as of March 2018 is around Rs.266,735.18 crore.
Company's Wealth and Recent Performance
Q1 FY 2018-19
The key financial highlights of the company’s performance for Q1 FY 2018-19, ended 30 June 2018 are as follows:
- The operating profit recorded a growth of 59.7% and stood at Rs.26,313 million. The increase was attributed to higher sales volume, cost reduction efforts, and partially offset by adverse commodity prices and forex rates.
- Maruti Suzuki recorded an increase of 24.3% in total vehicle sales which stood at 490,479. The domestic market sales were up 25.9% and stood at 4,63,840 units. On the other hand, exports stood at 26,639 units.
- The company registered an increase of 27.3% in net sales which stood at Rs.2,18,107 million.
- Maruti Suzuki registered a growth of 26.9% in net profit which stood at Rs.19,753 million. The growth was attributed to lower non-operating income as a result of mark-to-market impact on the invested surplus, as against last year.
- In the month of August 2018, the company registered total vehicles sales of 1,58,189 units which include 1,47,700 units in the domestic market and 10,489 units of exports. In 2017, Maruti Suzuki had sold a total of 1,63,701 units.
- The company also rolled out the new Ciaz with 1.5 litre Petrol Engine with new Smart Hybrid Technology installing Lithium-ion battery.
- In the month of September, the company started nationwide fleet testing of Electric Vehicles.
The key financial highlights of the company’s performance for the entire FY 2017-18, ended 31 March 2018 are as follows:
- Maruti Suzuki registered a growth of 13.4% in total vehicle sales which stood at 17,79,574 vehicles. The domestic market sales registered a growth of 1,405% and stood at 16,53,500 units while the exports stood at 1,26,074 units.
- Net sales stood at Rs.7,81,048 million and recorded an increase of 16.7% over the same period last year.
- The operating profit recorded an increase of 20.1% and stood at Rs.93,036 million. The growth was attributed to higher sales volume, and cost reduction efforts.
- Net profit for the year was up 5.1% and stood at Rs.77,218 million.
The key financial highlights of the company’s performance for Q4 FY 2017-18, ended 31 March 2018 are as follows:
- Net profit was up 10% and stood at Rs.18,821 million. The total vehicle sales of the company stood at 4,61,773 and reported a growth of 11.4%. The domestic sales registered a growth of 11.6% and stood at 4,27,082 units while exports were at 34,691 units.
- Net Sales of the company recorded a growth of 14.4% and stood at Rs.2,05,943 million, over the same period the previous year.
- The operating profit reported an increase of 24.4% and stood at Rs.23,125 million.
- In the third quarter that wrapped up on December 31, 2017, the country's largest automobile maker Maruti Suzuki India made a 3% rise in the net profit at Rs.1,799 crore. However, the growth in the net profit was lesser on account of a rise in the applied tax rates and lower non-operating income due to mark-to-market effect on invested surplus.
- In the last financial year, the company had recorded a net profit of Rs.1,747.2 crore in the same period.
- The operating profit during the quarter under review had increased by a significant 26.7% to Rs.2,348.8 crore. This was achieved due to higher sales and effective cost reduction efforts, lower sales promotion expenses and a supportive foreign exchange movement.
- Analysts had predicted that the company's net profit would cross Rs.2,000 crore in the last quarter. However, the numbers turned out to be lower than the predictions.
- While EPS was calculated to be at Rs.59.56. Total revenue garnered from operations increased marginally to rs.19,283 crore during this period against the Rs.19,196 crore mark that was set in October to December, 2016.
Limited Stock Trends in 2017 and 2018
- On 1 January 2018, the Open Price of a share of Maruti Suzuki India Limited stood at Rs.9,749.00 at BSE while at NSE, it was Rs.9,749.00. The Last Price on the first day of the month was at Rs.9,651.90 at NSE and Rs.9,665.45 at BSE. The High Price on the first day of the month was Rs.9,790.00 at BSE and Rs.9,780.00 at NSE. On the last day of the month, the Open Price was at Rs.9,572.00 at BSE and Rs.9558.05 at NSE. The Last Price on this was Rs.9,509.70 at NSE and Rs.9,514.15 at BSE. The High Price revolved around Rs.9,500 at both, NSE and BSE. The Low Price, on the other hand, was at Rs.9,400 at both, NSE and BSE.
- On the first day of February 2018, the Open Price was at Rs.9,530.20 at BSE and Rs.9,545.00 at NSE. The Last Price stood at Rs.9,401.85 at NSE and Rs.9,402.95 at BSE. The High Price floated around Rs.9,500 at both NSE as well as BSE. The Low Price stood at Rs.9,401.85 at NSE and Rs.9,314.55 at BSE. On the last day of February, 2018, the Open Price stood at Rs.8,855.60 at BSE and Rs.8,870.00 at NSE. The Last Price recorded was at Rs.8,850.95 at NSE and Rs.8,873.15 at BSE.
- In the month of March, the price of the stock stood at Rs.8,874 on NSE. The scrip continued to fall throughout the month by around 62 points and was at Rs.8,812.
- The stock price was crossed the Rs.9,000 mark in the month of April. It reached Rs.9,290 in the first half of the month. By the end of April, the price of the stock stood at Rs.8,790.
- In May, the scrip fell by around 280 points throughout the month and stood at Rs.8,639 by the end.
- The price of the stock picked up the pace in June and was at Rs.9,030 in the first half of the month. The opening price of the stock by the end of June was Rs.8,750.
- The scrip gained strength in the month of July and reached Rs.9,850. However, it fell towards the end of the month. By the end of July, the scrip had reached to Rs.9,400.
- In the month of August, the price of the stock fell by around 500 points by 15 August 2018 and stood at Rs.9,008. By the end of the month, the scrip stood at Rs.9,208.
- The scrip fell by around 250 points in the month of September. As on 12 September 2018, the stock price stood at Rs.8,539.
Limited Stock Trends in 2016 and 2017
- On 2 January 2016, the Open Price of a share of Maruti Suzuki India Limited stood at Rs.5,320.05 at NSE and Rs.5,348.85 at BSE. The Last Price was at Rs.5,466.10 at BSE and Rs.5,466.00 at NSE. The High Price floated around Rs.5,400 at both, NSE as well as BSE. On the last day of the month, the Open Price was at Rs.5,900.95 at BSE and Rs.5,889.00 at NSE. The Last Price recorded during this time was Rs.5,894.25 at NSE and Rs.5,896.00 at BSE. The High Price stood at Rs.4,117.90 at BSE and Rs.4,119.00 at NSE. The Low Price was recorded at Rs.3,933.65 at NSE and Rs.3,935.00 at BSE.
- On 1 April 2016, the Open Price of a share stood at Rs.3,725.00 at BSE and Rs.3,700.45 at NSE. The Last Price on the first day of the month was recorded at Rs.3,723.20 at NSE and Rs.3,723.25 at BSE. The High Price around this time was recorded to be at around Rs.3,700 at both NSE as well as BSE. The Low Price on the other hand, stood at Rs.3,723.25 at BSE and Rs.3,723.20 at NSE. Towards the end of the month, the Open Price Stood at Rs.3,749.75 at BSE and Rs.3,742.00 at NSE. The Last Price on this day was at Rs.3,794.65 at NSE and Rs.3,794.95 at BSE.
- On 1 September 2016, the Open Price rose to Rs.5,061.15 at BSE and Rs.5,074.00 at NSE. The Last Price recorded on this day was at Rs.5,060.75 at NSE and Rs.5,058.25 at BSE. On the last day of September, 2016, the Open Price was at Rs.5,420.00 at NSE and Rs.5,418.00 at BSE. The Last Price stood at Rs.5,479.20 at BSE and Rs.5,477.30 at NSE. The High Price during this time of the quarter was around Rs.5,400 at both, BSE and NSE. The Low Price was calculated to be at Rs.5,382.60 at NSE and Rs.5,383.00 at BSE.
- On 1 December 2016, the Open price of a share was at Rs.5,264.00 at BSE and Rs.5,266.00 at NSE. The Last Price was recorded to be at Rs.5,249.25 at BSE and Rs.5,252.10 at NSE. The Last Price on this day, stood at Rs.5,252.10 at NSE and Rs.5,249.25 at BSE. The High Price revolved around Rs.5,300 at both, BSE and NSE. On the last day of the quarter, the Open Price was at Rs.5,347.00 at NSE and Rs.5,353.00 at BSE. The Last Price stood at Rs.5,323.00 at BSE and Rs.5,319.55 at NSE. The High Price revolved around Rs.5,300 at both, NSE as well as BSE. The Low Price was at Rs.5,319.55 at NSE and Rs.5,311.00 at BSE.
- On 2 January 2017, the Open Price of a share was at Rs.5,248.85 at BSE and Rs.5,320.05 at NSE. The Last Price recorded on this day was at Rs.5,466.00 at NSE and Rs.5,466.10 at BSE. The High Price in the beginning of this quarter was at Rs.5,479.50 at BSE and Rs.5,474.20 at NSE. The Low Price stood at Rs.5,267.80 at NSE and Rs.5,270.00 at BSE. On the last day of the month, the Open Price stood at Rs.5,889.00 at NSE and Rs.5,900.95 at BSE. The Last Price on this day was recorded to be at Rs.5,896.50 at BSE and Rs.5,894 at NSE. The High Price hovered around Rs.5,900.90 at both, NSE and BSE while the Low Price was at Rs.5,800.
- On 3 April, 2017, the Open Price was at Rs.6,095.00 at NSE while at BSE, it stood at Rs.6,082.00. The Last Price on this day was recorded to be at Rs.6,072.35 at BSE and Rs.6,072.00 at NSE. The High Price revolved around Rs.6,000 at both, NSE and BSE. The Low Price was recorded to be at Rs.6,030.00 at NSE and Rs.6,032.55 at BSE. By the end of the month, the Open Price had risen up to Rs.6,676.00 at NSE while at BSE it stood at Rs.6,674.00. The Last Price recorded during this time was Rs.6,705.65 at BSE and Rs.6,705.50 at NSE.
- On 1 September 2017, the Open Price of a share of the company had risen Rs.7,765.00 at BSE and Rs.7,747.50 at NSE. The Last Price recorded was at Rs.7,812.30 at NSE and Rs.7,812.70 at BSE. The High Price recorded around this time was at Rs.7,800 at both, NSE and BSE. The Low Price around this time floated around Rs.7,700. By the end of the month, the Open price stood at Rs.7,935.00 at BSE while at NSE, it stood at Rs.7,960.00.The Last Price recorded during this period was at Rs.7,978.20 at NSE and Rs.7,973.15 at BSE. The High Price around this time revolved around Rs.8,000 at both, BSE and NSE. The Low Price, however, was recorded to be at around Rs.7,900.
- In 1 December 2017, the Open Price was at Rs.8,645.25 at BSE and Rs.8,660.00 at NSE. The Last Price was recorded to be at Rs.8,609.00 at NSE while it stood at Rs.8,607.55 at BSE. The Last Price stood at Rs.8,607.55 at BSE and Rs.8,609.00 at NSE. The High Price was at Rs.8,695.00 at NSE while at BSE, it was Rs.8,695.00. The Low Price recorded at this time was Rs.8,595.00 at BSE and Rs.8,593.00 at NSE. Towards the end of this quarter, The Open Price had spiked to Rs.9,640.00 at BSE and Rs.9,659.00 at NSE. The Last Price was recorded to be at Rs.9,729.55 at NSE and Rs.9,731.35 at BSE. The High Price floated around Rs.9,700 at both, NSE and BSE while the Low Price was at Rs.9,600.
Should You Invest in Maruti Suzuki India?
In the last financial year, the share prices of Maruti Suzuki India Limited have witnessed a substantial increase. The company is also going strong with a spike in the number of units been produced in the last quarter. The company has gained a 3% increase in the net profit at Rs.1,799 crore. This shows that the company is planning to take their revenue and turnover to greater heights. Hence, it will be a good idea to invest in the shares of Maruti Suzuki India Limited for a long term. It would be wise to buy the company’s stocks now as they have been experiencing an upward trend in the last financial years.
Formerly known as Maruti Udyog Limited, the Maruti Suzuki India Limited, is the largest automobile manufacturer in India. The company produced the Maruti 800 that became one of the most popular cars across the country. The company recently bagged the Gold Exceed Award 2017 for achieving excellent standards of health, safety and environment at workplace.
History of the Company
Maruti Suzuki India Limited was previously known as Maruti Udyog Limited. This enterprise was established in February 1981 but production began only in the year 1983. It began production with Maruti 800 which was based on the concept of Suzuki Alto Kei Car. In the year 1970, a private enterprise called Surya Ram Maruti Technical Services Private Limited (MTSPL) was inaugurated on November 16, 1970. The company's purpose was to offer technical knowledge for the manufacturing, design, and assembly of a completely indigenous motor car.
In the year 1971, under the Companies Act, a business entity called Maruti Limited was incorporated. Maruti Limited entered liquidation in 1977. Because of the efforts of Dr. V. Krishnamurthy, Maruti Udyog Limited was incorporated. In the year 2000, Maruti became the pioneer car company in India to bring out a Call centre for customer and internal services. The relationship that the Suzuki Motor Corporation shared with the Government of India turned sour over the debate of a joint venture. It was resolved only when Suzuki Motor Corporation gained control over the stakes.
Mr. RC Bhargava-Chairman
Mr. Bhargava became the Chairman of Maruti Suzuki India Limited in the year 2007. In the year 2003, he was the Director of Maruti Udyog Limited. He holds an MS degree in Mathematics from Allahabad University. He also pursued Master of Arts in Developmental Economics from Williams College, Williamstown, MS, USA.
Mr.Kenichi Ayukawa-Managing Director and CEO
Mr.Ayukawa came on board of Suzuki Motor Corporation in 1980. He's a law graduate from Osaka University in Japan. Previously, he has served as a Managing Director of Pak Suzuki Motor Company from the month of May 2004 to June 2008. Before joining as the Managing Director at Maruti Suzuki India Limited, he served as the Executive General Manager and Managing Executive Officer at Suzuki Motor Corporation, Japan.
A graduate from the faculty of Law from the Chuo University, Mr. Suzuki joined as the Director of Maruti Suzuki India Limited in the year 2002. In 2000, he was the Chairman and CEO of Suzuki Motor Corporation. He shouldered the responsibility of the President and the CEO of Suzuki Motor Corporation. Under his able guidance, the group has achieved significant milestones.
Maruti Suzuki India Limited in NSE, BSE, and Indices
Stocks of Maruti Suzuki India Limited can be bought and sold on any of the two stock exchanges, namely, National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The codes for the same are mentioned below:
Sector: AUTO-CARS & JEEPS
Maruti Suzuki India Limited
1, Nelson Mandela Road
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