Maruti Suzuki India Ltd Achieves ₹4 Lakh Crore Market Cap Milestone

27 Mar 2024 , 01:41 PM

Maruti Suzuki India Ltd (MSIL) has emerged as India’s 19th listed company to surpass the coveted ₹4 Lakh Crore market capitalization milestone, marking a significant achievement amidst a surge in its share price, which has escalated over 23% in 2024.

On March 27, the company’s stock soared to a record high of ₹12,725 on the BSE, registering a remarkable gain of 4%. As of 12:30 PM, the shares were trading at ₹12,630 on the NSE, reflecting a 3.10% increase from the previous close.

MSIL’s accomplishment adds it to the league of esteemed companies such as RIL, TCS, HDFC Bank, Infosys, and others, which have achieved similar milestones in terms of market capitalization.

While Maruti Suzuki has showcased commendable performance in Q3FY24, with a notable 33% increase in net revenue driven by higher realizations, particularly in the premium utility vehicle segment and robust export performance, concerns persist regarding the sustainability of future margins. Despite concerns over single-digit year-on-year sales growth, the company demonstrated resilience, attributed in part to operating leverage from increased UV sales and exports, coupled with lower raw material prices.

However, subdued sales in the entry-level car segment pose challenges to overall revenue growth. Furthermore, uncertainties surrounding the FY25 product cycle amidst stiff competition and escalating raw material costs raise apprehensions regarding margin sustainability.