Maruti Suzuki Stocks Touched 52-Week High at Rs. 10,000!

Maruti Suzuki, India’s largest automobile manufacturer, has achieved a significant milestone in the stock market as its share price crossed the Rs 10,000 mark on Wednesday.

On July 5, Company’s shares commenced trading at Rs 9697, representing a 0.5% increase compared to the previous day’s closing price of Rs 9647.40. During the intraday session, the stock reached a new 52-week high of Rs 10036.95. Ultimately, the shares of the automotive giant closed 3.57% higher at Rs 9992.30 on NSE.

Furthermore, the market capitalisation of the company touched a significant mark of Rs 3 lakh crore on the same day. It reflects the confidence of investors in the company’s long-term prospects.

The stock has garnered significant interest in recent times, primarily driven by the much-awaited launch of the Jimny and Fronx models at the Auto Expo 2023.

Moreover, the company unveiled its latest flagship model, the Invicto MPV, on Tuesday. Priced between Rs 24.79 lakh and Rs 28.42 lakh (ex-showroom), the Invicto now holds the distinction of being the most expensive vehicle among all the models of the company. Essentially, the Invicto is a rebranded variant of the Toyota Innova Hycross.

Furthermore, as per the company’s Managing Director and CEO, Hisashi Takeuchi, the company aims to double its turnover to approximately Rs 1.68 lakh crore by the FY 2030-31. This ambitious target aligns with the global growth strategy of its parent company, Suzuki Motor Corporation.

The firm is expecting India to ‘play a very big role’ in Suzuki Motor Corporation’s goal to achieve a global turnover of Rs 4.32 lakh crore in FY30-31, which would be exactly double the turnover of Rs 2.16 lakh crore achieved in FY21-22, said Takeuchi.

Takeuchi said construction at the company’s new manufacturing facility at Kharkhoda in Haryana is in full swing and plans to commission the first plant with an annual manufacturing capacity of 2.5 lakh units by 2025.

He further highlighted, once the facility reaches full operational capacity, it will have the ability to manufacture 10 lakh vehicles annually. This achievement would position the Kharkhoda facility as one of the world’s largest single-location manufacturing sites.

In addition, he said, “We have received the Board approval for expanding our production capacity to manufacture up to 10 lakh additional units per annum over and above Kharkhoda.”

When analysing the share price movement of Maruti Suzuki over the years, then it took approximately two decades or 7295 days for the share price to reach Rs 10,000 from Rs 200, which was recorded in July 2003.

Additionally, the share price reached the Rs 5000 mark on August 16, taking roughly 7 years from this price to double and ultimately reach Rs 10,000.

Over the past three months, Maruti Suzuki’s stock has delivered a return of 16.6%. Looking at a slightly longer timeframe, the stock has performed impressively over the past three years, generating a substantial return of over 62%.

Remarkably, in the last ten years, the stock has experienced remarkable growth, delivering a multibagger return of over 500%.

At the time of writing, the stock is trading at around Rs 9,950 on NSE.

Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and are not recommendatory.