Maruti Suzuki’s stock is currently the fourth most expensive auto stock across the globe with reference to projected earnings for the next fiscal year. The stock is now available at 21.86 times of the forecasted earnings for next year.
Maruti Suzuki has successfully delivered a stock return of 28% over the last six months which is definitely the highest amongst automobile companies globally. The company’s market cap now stands at a whopping $5.5 billion. The global automotive median return stood at approximately -10.43% in this category according to specific data and industry reports. The performance of Maruti Suzuki’s stock has helped the company leap into the top 20 auto list globally. The stock of the company touched a new record of INR 4, 768 per share this Friday and market cap stood at $21.65 billion which is way higher than Fiat Chrysler. Yet, sales figures of Maruti Suzuki are only 6.3% of those generated by Fiat.
Only BYD, Tesla Motors and Ferrari are stocks trading higher than Maruti’s present valuations. The company is also among the most loved and popular stocks in this category. Maruti Suzuki is slated to attain the 35% profit margin between the fiscal year 2015 and 16 and this will be majorly due to expansion of margins, comparatively lesser discounts and of course, reductions in prices of commodities. The company is slated to launch new models in addition to extra fuel options for its existing lineup. This will certainly improve market share in several segments. Market share of the company should touch 50% from its present 45% by the fiscal year 2018 according to experts.
Being added to the MSCI India Index has also been a boon for the company with $350 million flowing in and an increase in FII limits to 40%. In recent times, the market cap of the company has exceeded that of its parent organization, Suzuki Motor Corporation which is definitely a huge accomplishment for an Indian brand.