With Rs 4 lakh Cr M-cap, Maruti becomes 19th Listed Indian Company to Reach this Benchmark

With Rs 4 lakh Cr M-cap, Maruti becomes 19th Listed Indian Company to Reach this Benchmark

Other listed Indian companies which achieved this remarkable benchmark include SBI, Bharti Airtel, ICICI Bank, Infosys, HDFC Bank, TCS and RIL respectively.

On March 27, Maruti Suzuki India Ltd (MSIL) became India’s 19th listed firm to reach Rs 4 lakh crore market capitalization, with shares up over 23% in 2024.

The stock reached a record high of Rs 12,725 on the BSE and gained up to 4%. At 12.30pm, the stock was trading at Rs 12,669 on the BSE, up 3.4% from the previous close.

Till date Adani Total Gas, Kotak Mahindra Bank, Adani Enterprises, HCL Technologies, Adani Green, Adani Energy, Bajaj Finance, L&T, ITC, HUL, LIC, SBI, Bharti Airtel, ICICI Bank Ltd, Infosys, HDFC Bank, TCS, Reliance Industries Limited have reached the phenomenal landmark.

On Wednesday, the yen reached a 34-year low. Despite Japan’s withdrawal from negative interest rates, the yen remains the worst-performing major currency this quarter, falling more than 7% against the dollar. Officials warn against speculative activities, and Finance Minister Shunichi Suzuki says Japan will not rule out any steps if the currency falls too quickly.
Analysts believe a weaker yen boosts Maruti’s EBITDA by lowering the cost of imported goods and services. This occurs because the corporation pays less yen for the identical products. However, these cost savings are rarely passed on to customers.

Aside from the weakened yen, Maruti Suzuki outperformed expectations in Q3FY24, despite concerns about single-digit year-on-year sales growth.
Higher realisations, principally driven by a 60% growth in the premium utility vehicle market and strong export performance, contributed to a 33% increase in net revenue.
However, entry-level automobile sales were modest, lowering total revenue. Operating leverage from increasing UV sales and exports, along with decreased raw material prices, resulted in a 200 basis point rise in EBITDA margin, to 11.7%. This resulted in a 33% rise in earnings after tax. However, concerns about future margin sustainability remain due to rising raw material costs and uncertainties surrounding the FY25 product cycle amid tough competition.

According to analysts, MSIL’s new SUV launches (especially the new Brezza, Grand Vitara, and Fronx) are helping the company acquire market share in the rapidly increasing SUV industry.

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