Maruti Suzuki stock rallies despite electronic components shortage impact Feb sales; Prabhudas Lilladher says 'buy'
2 min read . Updated: 01 Mar 2023, 09:58 PM IST
Premium- In February, Maruti sold a total of 172,321 units up by 5.03% YoY. Of the total sales in February 2023, domestic sales stood at 150,823 units, sales to other OEMs at 4,291 units, and exports at 17,207 units.
Auto giant Maruti Suzuki emerged among the top gainers on Wednesday contributing to lifting the overall market performance despite the electronic components shortage taking a jab at its sales and production numbers for February 2023 month. Maruti's share price gained nearly 2% on BSE. Vaishali Parekh, Vice President - Technical Research of Prabhudas Lilladher sees much potential upside in Maruti stock and has added in her medium-term technical pick.
On BSE, Maruti's share price closed at ₹8,763.60 apiece -- up by ₹137.80 or 1.60%. The stock was near the day's high of ₹8,775 apiece. Its market cap is around ₹2,64,730.88 crore.
In her note, Parekh said, "the stock has witnessed a gradual slide and consolidated near the significant 200DMA zone of 8630 levels and currently has indicated a pullback with improvement in the bias to move past the important 50EMA level of 8690 to anticipate for a further rise in the coming days."
Further, she said, "the RSI is well placed and has indicated a trend reversal to signal a buy and has much upside potential from here on."
Accordingly, Parekh recommended a buy in Maruti stock for an upside target of ₹9,750 keeping a support level of ₹8,400.
Year-to-date, Maruti's stock has gained over 4.25% on Dalal Street.
On Wednesday, Maruti Suzuki announced its sales and production data for February month.
As per the regulatory filing, in February, Maruti sold a total of 172,321 units up by 5.03% YoY. Of the total sales in February 2023, domestic sales stood at 150,823 units, sales to other OEMs at 4,291 units, and exports at 17,207 units.
Maruti said, "the shortage of electronic components had a minor impact on the production of vehicles, mainly in domestic models," adding, "the company took all possible measures to minimise the impact."
So far in FY23, Maruti has sold 1,796,093 units.
On the other hand, Maruti's production dipped by 5.78% to 159,873 units in February 2023 versus 169,692 units produced in the same month last year, owing to a shortage of electronic components.
Maruti expects the shortage of electronic components may have an impact on March’23 production more than that in recent months.
In Q3FY23, Maruti garnered a significant rise in its net profit to ₹2,351 crore -- which is more than doubled from ₹1,011 crore in the year-ago quarter. Meanwhile, revenue from operations witnessed a growth of about 25% to ₹29,044 crore as compared to ₹23,246 crore year-on-year (YoY).