Breakout Stock: Maruti Made New All Time High

On 13th of October 2023, we witnessed MARUTI made new 52 week high. So, let’s dig deep and find out what’s so special about the stock. As we know the principal activities of the company are manufacturing, purchase and sale of motor vehicles, components, and spare parts. In this post, we’re going to highlight some key points and try to understand the financials of the company.

But before that, we would request you to read the disclaimer below:

THIS IS NOT A STOCK RECOMMENDATION. WE ARE NOT ENCOURAGING YOU TO TRADE OR INVENT IN THE STOCK. THIS POST IS JUST FOR EDUCATIONAL PURPOSES. PLEASE DO YOUR OWN RESEARCH OR CONSULT YOUR FINANCIAL ADVISOR BEFORE MAKING ANY PURCHAGE DECISION.

Essential Points

Maruti Suzuki has 42% market share of major car manufactures.
Domestic sales volume is 94% while exports is 6%.
The company has excellent financial risk profile and has a very strong cash generating ability.

Maruti Chart

Here is a the chart structure of the stock. As you can see the stock new high of 10747.95 and closed at 10727.55 with a good volume of 625.954K.

Potential Targets

If Fibonacci levels to be believed, here are the next potential targets of the stock.

Target 1 – 11083.85
Target 2 – 11695.75
Target 3 – 12307.70

Pros and Cons

+ The company is almost debt free.
+ The company has been maintaining a good dividend payout of 36.9%.
+ Price to Earning Ratio is 33.41 which is lower than its sector.
+ The stock is overprices but its not in the overbought zone yet.
+ Pledge of share is low.
– The stock is trading 5.24 times of its book value.
– Mutual fund holding decreased by 0% in the last quarter to 11.25.

Quarterly Results

Here is the results of previous 3 quarters. All figures is in crores.

Description	DEC 2022	MAR 2022	JUN 2023
Net Profit	2,351.30	2,623.60	2,485.10

Source

Profit and Loss

Here is the profit and loss report of last 3 years financial years. All figures is in crores.

Description	MAR 2021	MAR 2022	MAR 2023
Net Profit	4,389	3,766.30	4,229.70