Maruti Suzuki breaches Rs 4 lakh crore m-cap mark as stock races to fresh 52-week high

Shares of Maruti Suzuki India (MSIL) jumped 4% on Wednesday to hit a fresh 52-week high of Rs 12,722.70 on the NSE. The company also entered the coveted club of stocks with a market capitalisation of Rs 4 lakh crore.

Currently, there are 13 other stocks with a market capitalisation of Rs 4 lakh crore or more, namely Reliance Industries (RIL), Tata Consultancy Services (TCS), HDFC Bank, ICICI Bank, Bharti Airtel, State Bank of India (SBI), Infosys, Life Insurance Corporation of India (LIC), ITC, Hindustan Unilever (HUL), Larsen & Toubro (L&T), Bajaj Finance and HCL Technologies.

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The largest passenger car maker has seen its stock zoom by over 50% in the past 12 months. In 2024, it has risen 23%. Though Maruti’s 1-year returns are lower than Nifty Auto (up 77%), it has outperformed the index on a year-to-date basis. Nifty Auto’s returns this year are just over 14%.

The gains could be attributed to weakness in the Japanese yen which hit a 34-year low against the dollar on Wednesday. This comes just over a week after the Bank of Japan announced a much-anticipated interest rate hike in a shift away from years of ultra-loose monetary policy.

The unit weakened to 151.97 per dollar, its softest since 1990. The drop comes after a top bank official suggested it would continue to pursue an accommodative policy for the time being and has raised speculation that authorities will intervene in markets to prop up the currency. Weaker yen benefits Maruti as its cost for imported goods and services gets lower. Maruti Suzuki India had reported a strong set of numbers in the December quarter. Its consolidated net profit jumped by over 33% for the said quarter at Rs 3,206.8 crore versus Rs 2,406.1 crore reported in the year-ago period. Revenue for the quarter came in at Rs 33,512.8 crore vs Rs 29,251.1 crore a year ago, registering a 14.5% YoY growth.

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