Maruti Suzuki stock ends lower post brokerage view

According to the media reports, global research firm CLSA has maintained a sell on the stock and has raised the target to Rs6,300 from Rs5,675 per share.

Oct 30, 2020 04:10 IST India Infoline News Service

Maruti Ignis
Shares of Maruti Suzuki India ended lower on the stock exchange post brokerage view. According to the media reports, global research firm CLSA has maintained a sell on the stock and has raised the target to Rs6,300 from Rs5,675 per share.

The research firm said that it is of the view that profitability improvement lagged peers with strong volume growth but a weak mix. Key positives were the commentary around the festival retails, the media report added.

The stock ended at Rs6,940, down by Rs174 or 2.45% from its previous closing of Rs7,114 on the BSE.

Meanwhile, Maruti Suzuki witnessed a marginal rise in standalone net profit of Rs1371.6cr for the quarter ended September 2020 (Q2FY21), compared to a profit of Rs1358.60cr recorded a year ago same period. In June 2020 quarter, Maruti registered a loss of Rs249.4cr.

Furthermore, Maruti recorded an operating profit of Rs1,167.7cr in the quarter higher by 71.7% yoy. This was on account of higher sales volume, lower sales promotion expenses, lower operating expenses and cost reduction efforts partially offset by an increase in commodity prices and adverse foreign exchange movement.

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