Maruti Suzuki gains on plans to expand NEXA outlets

After a slow start, Nexa finds its footing

  Maruti Suzuki India (MSIL) rose around 3% to Rs 4,689.20 on BSE after the company said that it plans to expand the number of NEXA outlets to 250 by March 2017.

On BSE, so far 39,324 shares were traded in the counter, compared with an average volume of 74,308 shares in the past one quarter. The stock hit a high of Rs 4,699 and a low of Rs 4,570 so far during the day. The stock hit a record high of Rs 4,789 on 23 November 2015.

The stock hit a 52-week low of Rs 3,202.10 on 29 February 2016. The stock had outperformed the market over the past one month till 27 July 2016, rising 13.1% compared with 6.14% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 18.04% as against Sensex's 7.52% rise.

Maruti Suzuki India (MSIL) said that NEXA is expected to contribute 15% of Maruti's sales by 2020. MSIL said that NEXA, the new automotive sales channel of the company has completed one year of operations. Launched in July 2015, NEXA has enabled MSIL to attract new categories of customers to its fold.

NEXA has rapidly grown to 150 showrooms across 94 cities. Over 1 lakh cars have been sold through NEXA. This is about 10% of MSIL's total domestic sales, the company said. At present, the cars sold through NEXA are premium cross-over, S-Cross and premium hatchback, Baleno.

Maruti Suzuki India's net profit rose 23% to Rs 1486.20 crore on 12.1% rise in net sales to Rs 14654.50 crore in Q1 June 2016 over Q1 June 2015.

Maruti Suzuki India is India's biggest car maker in terms of market share. Japanese parent Suzuki Motor Corporation currently holds 56.21% stake in Maruti (as per the shareholding pattern as on 30 June 2016).