Maruti Suzuki stock rebounds by over 7%
Jan 29 2014 , Mumbai
Maruti's stock ended 7.11 per cent higher at Rs 1,674.35 on the BSE. During the day, the stock gained 8.57 per cent to Rs 1,697.25.
At the NSE, the scrip rose by 6.96 per cent to settle at Rs 1,675.05.
The stock was the top gainer among the blue-chips on both Sensex and Nifty.
In the previous session, Maruti Suzuki had slumped by over 9 per cent.
"Maruti reported strong results for Q3 FY14, ahead of our estimates, driven largely by cost control measures, localisation benefits and favourable currency movement. While the top-line was broadly in-line with our estimates, bottom-line was higher than our estimates.
"Meanwhile, the company's board has approved Suzuki's proposal to undertake expansion at Gujarat plant through a 100 per cent Suzuki subsidiary," said Yaresh Kothari, Research Analyst – Auto & Auto Ancillary, Angel Broking.
Maruti Suzuki India yesterday posted a 35.87 per cent increase in net profit to Rs 681.15 crore for the third quarter ended December 31 on account of higher localisation, favourable foreign exchange and cost reduction initiatives.
The company had posted a profit of Rs 501.29 crore in the corresponding period of the previous financial year.
Japan's Suzuki Motor Co yesterday said it will invest $ 488 million (about Rs 3,050 crore) in setting up a car factory in Gujarat by 2017, which was proposed by subsidiary Maruti Suzuki India.