Maruti Suzuki Value Rises on Strong Small Car Demand
Maruti Suzuki added $1.24 billion in market value as investors focused on small car demand. The firm plans to expand capacity despite a quarterly profit miss.
MARUTI SUZUKI INDIA LTD gained as much as 5.1% on Wednesday as investors looked past near-term margin pressures to bet on strong small car demand. The stock settled 2.8% higher in India, adding 117.27 billion rupees ($1.24 billion) in market value and serving as the top boost on the broader auto index, which ended 1.2% higher. Investors are prioritizing a 10% volume growth forecast over a quarterly profit miss caused by rising material costs.
Maruti Suzuki reported a profit of 35.91B rupees ($379M) for the quarter ended March 31, missing the 41.38B rupees expected by analysts. Raw material costs and lower non-operating income drove the shortfall.
