A firm raised price of Maruti Suzuki. Stock Market News.






This global brokerage firm raised the target price of Maruti Suzuki shares.


Bank of America Securities has increased the target price of Maruti Suzuki India shares from Rs 7,450 to Rs 8,650. This global brokerage firm has also improved its rating. He has changed his opinion about Maruti's stock from 'neutral' to 'buy'.


Maruti Suzuki is the country's largest manufacturer of cars. The brokerage firm has hoped that the company's earnings will improve after FY 2019-20. Improvement in volume will increase the company's profits, which will justify its premium valuation. The company is among the highest premium companies in the region.


Increase in volume will increase the chances of improvement in earnings. In FY 2020-21 and FY 2021-21, earnings can increase by 10 per cent. The company has made changes to 60 per cent of its vehicles in view of BS VI standards with low inventory and limited discounts.


The brokerage says margins could improve by up to 13 per cent in FY 2021-22 due to improvement in volumes and price stability. But it will be less than 15 percent of the financial year 2015-16. At 12.10 pm on Wednesday afternoon, Maruti Suzuki shares were trading at Rs 7180, down 0.23 percent.


Brokerage firm analyst Sahil Kedia said, "We expect Maruti Suzuki's earnings to increase during FY 2019-20. It will see an impact in the next two years. We expect margins to increase after the current round of recovery and The company will get the benefit of the prices. "


The shares of the company have fallen by more than 4 percent in the year 2019, while the Nifty 50 index has strengthened by more than 12 percent. The economic slowdown in the country and the continuously decreasing sale of vehicles have also affected the Maruti Suzuki shares.



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