After the stock price fell to Rs 6,420 per share, Maruti Suzuki India Limited fell 2.5 per cent to hit a intraday low of Rs 7,025 on the Bombay Stock Exchange BSE The stock has been in a downward spiral after the brokerage house CLSA downgraded the stock to'sell' from 'underperform'.
The stock was close to 7202.15 and opened at Rs 7,220, up 0.25 per cent higher than the previous close of Rs 7202.15. It did not hold on to the mild gains and slipped into red territory.
With a market value of Rs 2,12, 841 crore, the shares are less than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
CLSA said that the auto major is losing market share in the highly profitable SUV segment. The company may lose 600 bps of market share in the Passenger Vehicles PV segment over FY 20 -- 22. It said we continued to forecast market share loss despite a weak model launch pipeline.
Passenger Vehicles PVs and Commercial Vehicles CVs performed relatively well, but volumes were below broader expectations. We see demand momentum sustaining due to easing supply-chain constraints, new launches, increased preference for personal mobility and improved consumer sentiments in PVs. Nirmal Bang said in the Automobile Sales Monthly Report that there is scope for regaining lost volume due to relatively weak festivals during the leaner months post festivals.
Domestic PV sales were affected due to supply chain constraints. India's largest automaker reported its total sales of 139,184 units in November 2021, down 9.2 per cent year-on-year. Total sales were 153,223 units a year ago, according to the automaker.
The total domestic passenger vehicle sales were at 109,726 units compared to 135,775 units a year ago, while the total domestic sales were 117,791 units compared to 144,219 units a year ago.
The company said it will increase the prices of its vehicles from January next year. It said that the cost of vehicles has been adversely impacted due to COVID 19 and that the impact will be passed on to customers. The cost of company's vehicles continues to be adversely impacted over the past year because of the increase in input costs. It has become imperative for the Company to pass on the impact of the above additional costs to customers through a price hike, it stated in a filing.
The price rise is planned for January, 2022. The increase will be different for different models, said Maruti Suzuki.