The price of Maruti Suzuki’s shares fell more than one percent on the afternoon trade on December 3 after CLSA lowered the stock to “sell” from “underperform” and cut the target to Rs 6,550 per share.
The brokerage company said that if the company lost its share in the SUV segment, it might lose 600 bps market share in the passenger vehicle segment over FY20-22.
“Our EPS estimate is 20 percent / 17 percent below the consensus for FY23 / 24. We continue to estimate the loss of market share in the middle of the weak model launch pipeline,” he said.
Stock traded at Rs 7,222.35, down Rs 102.65, or 1.40 percent, at 14:26 hours. It touched the highest intraday RS 7,332.45 and low intraday Rs 7,208,50.
“Our EPS estimate is 20 percent / 17 percent below the consensus for FY23 / 24. We continue to estimate the loss of market share in the middle of the weak model launch pipeline,” he said.
Stock traded at Rs 7,222.35, down Rs 102.65, or 1.40 percent, at 14:26 hours. It touched the highest intraday RS 7,332.45 and low intraday Rs 7,208,50.
The largest car maker in the country said production in December could only reach 85 percent from normal, because it limits electronic components amid a lack of chips.
Because of supply constraints, the company expects a bad impact on vehicle production in December 2021 in both Haryana and Gujarat, because of the constraints of supply of electronic components that are influenced by the lack of semiconductor devices, said Maruti Suzuki India in submission of regulations.
“Even though the situation is quite dynamic, currently it is estimated that the total volume of vehicle production in both locations can be around 80 percent to 85 percent of normal production,” he said.
The company automatically reported total sales of 139,184 units in November 2021, down 9.2 percent yoy. It has reported total sales at 153,223 units in last year period. The sale of domestic passenger vehicles came at 109,726 cars against 135,775 units a year ago.
The company exported 21,393 units in November 2021 against 9,004 cars on November 2020.