Maruti Suzuki India was established in 1981. A joint venture agreement was signed between the Government of India and Suzuki Motor Corporation (SMC), Japan in 1982. This company then became a subsidiary of SMC in 2002. It is the market leader in passenger vehicle segment in India. Considering production volume and sales, Maruti is now SMC’s largest subsidiary. SMC currently holds 56.28% of its equity stake.
The principal activities of the Company are manufacturing, purchase and sale of motor vehicles, components and spare parts.
Quarterly Earnings Growth
India’s largest car maker Maruti Suzuki India reported a tremendous 333 percent year-on-year (YoY) growth in its consolidated net profit at Rs 2,112 crore for the quarter ended September FY23 (Q2FY23) on a low base. Higher commodity prices and chip shortage concerns had severely impacted earnings in the year-ago period. Thus, easing of both concerns, along with healthy operating performance, sales volumes, top-line and higher other income supported the bottom line. Consolidated revenue from sales & operations spiked by 45 percent YoY to Rs 29,942 crore.
Maruti Suzuki sold a total of 5.17 lakh vehicles during the quarter ended September FY23, the highest ever in the history of the company, which has increased by 36 percent YoY. It consists of domestic sales of 4.54 lakh units and exports at 63,195 units.
Partnership with IIT Bombay
Maruti Suzuki India has signed a Memorandum of Understanding (MoU) with Society for Innovation & Entrepreneurship (SINE), IIT Bombay for the expansion of the reach of its innovation programs for start-ups.
As part of the three-year MoU, SINE will support in outreach and incubation of potential start-ups which could be a part of Maruti Suzuki’s innovation programs. Maruti Suzuki and SINE together will shortlist start-ups for some of the complex business problems which were identified by the company. They will be in collaboration to screen applications, organise workshops with mentors, industry experts and investors.
New launches scheduled fort Auto Expo 2023
Maruti Suzuki will reveal an electric concept SUV, two new SUVs and many others at the Auto Expo 2023.
The company will be showcasing a variety of 16 vehicles at the Expo consisting of an Electric Concept SUV, two new SUVs, WagonR Flex Fuel prototype and their customized range of existing products like Grand Vitara, XL6, Ciaz, Ertiga, Brezza, Baleno, and Swift among others.
Agreement with a trading port
Maruti Suzuki India Limited has signed an agreement for 5 years with Kamarajar Port Limited for the export of passenger vehicles to global markets. The Kamarajar port is about 20 km to the northside of the Chennai Port in Tamil Nadu. The company will be exporting cars to Africa, the Middle East, Latin America, ASEAN, Oceania and SAARC regions. It would export about 20,000 vehicles from this port every year.
Maruti is committed to the ‘Make in India’ initiative of the government and the company’s expanding export operations has displayed its dedication to offer reliable, high quality, technologically advanced cars to global customers
Technical Analysis
Maruti Suzuki share price has recently made a triple top around its lifetime high of Rs 9996. The price faced heavy resistance and has fallen down from the highs. A breakout over this level has a very high probability considering the sturdy growth in the current fiscal year. The price has broken the 23.6% retracement level. We may initiate short trades into this stock as it may fall further to the 38.2% retracement level which could be a strong support level for Maruti Suzuki. MFI is at 39 points on the weekly chart which indicates the stock is very close to being oversold in the mid-term. However, the price is still above the 200-day exponential moving average will indicates that the stock is relatively overbought, and for a fresh entry we must wait for the correction to hit a further low.
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