By Aditya Raghunath
Investing.com -- On August 30, India’s largest automaker Maruti Suzuki India Ltd. (NS:)’s shares closed up 2.67% after it announced that it would hike prices on all models in September. “We wish to inform you that over the past year the cost of the company's vehicles continues to be adversely impacted due to an increase in various input costs. Hence, it has become imperative to pass on some impact of the additional cost to the customers through a price rise,” Maruti Suzuki India (MSIL) said in a stock exchange filing.
The price rose even as the company said that its September production would be further affected due to lockdowns in Malaysia that have worsened the shortage in semiconductors. This would mean that the company is likely to produce only between 60,000 – 90,000 vehicles in the month, a cut of around 60%. For August, the company is expected to produce between 110,000 -120,000 vehicles, a cut of 30-40%.
The last one month has seen Maruti Suzuki lose almost 4% in its share price. However, brokerages are bullish on the stock. Two weeks back, Goldman Sachs (NYSE:) gave a buy call on the stock with a target price of Rs 9,036, an upside of almost 33%.
Motilal Oswal (NS:) is also bullish on the stock with a target of Rs 8,200.
Brokerages are Bullish on Maruti Suzuki; See 33% Upside - Investing.com India
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