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Vitara Brezza Might Launch on March 21

Maruti Suzuki India (MSIL) dipped to its 52-week low at Rs 3,372, down 1.5% on the BSE, extending its month-long fall on the bourses.

Thus far in February, the stock has underperformed the market by falling 18% from Rs 4,097 on January 29, as compared to 8% decline in the S&P BSE Sensex.

The country’s largest car maker had reported a low single digit growth of 0.8% in domestic sales in January. MSIL sold 106,383 units in the domestic market during January 2016 against 105,559 units in the same month last year.

Emkay Global Financial Services cut MSIL’s volume growth estimates for FY17/FY18 by 3-4% to 14%/16% given only a modest improvement in demand environment and likely capacity constraints.

Meanwhile, the company reported net profit of Rs 1,019 crore in October-December quarter (Q3FY16) against an average analyst estimate of Rs 1,330 crore.

The company’s performance in Q3FY16 was weak due to lower?than? expected earnings before interest, taxes,
depreciation, and amortization (EBITDA) margins, coupled with lower non?operating income and higher?than?expected depreciation provision.

Analyst at Prabhudas Lilladher however remains positive on MSIL on expectations of market share gains and good demand growth driving revenues.

A healthy recovery in economic growth, sales prospects from new models, both domestically and overseas and incremental demand from hike in public sector wages provide a positive outlook ahead, the broking firm said in recent report.

At 12:03 PM, the stock was down 1% at Rs 3,387 on the BSE as compared to 0.31% gain in the benchmark index. A combined 406,189 shares changed hands on the counter on the BSE and NSE.