Facility denied SEZ status, MUL overturns
Car major Maruti Udyog lost 0.4% to Rs 939.50, amid volatile trade.
As many as 2.2 lakh shares changed hands in the counter on BSE.The stock had dropped 1.1% on Tuesday (7 November) to Rs 943.90 following reports that the ministry of commerce and industry rejected the automaker's application for granting special economic zone (SEZ) status to its upcoming manufacturing facility at Manesar.
The stock has moved within a range since late September 2006. It moved between Rs 926 and Rs 982 since 25 September 2006. Heavy Industries Minister Santosh Mohan Deb said on Wednesday he had formally proposed the selling of the remaining 10% government stake in car maker Maruti Udyog. Suzuki holds 54.2% in the car maker.
An erstwhile joint venture between Suzuki and the Indian government, the latter offloaded its stake in Maruti Udyog through an IPO in 2003. It may be recalled that in 2004, the government with its remaining stake had used its clout to force Suzuki to route its major expansion plans for India through Maruti Udyog.
Meanwhile, as per reports, carmakers are expected to raise prices in the near future due to rising production costs and shrinking margins. In general, the prices would be hiked by up to 3% across most models.
As per recent reports, the ministry of commerce and industry rejected the automaker's application for granting special economic zone (SEZ) status to its upcoming manufacturing facility at Manesar in collaboration with Nissan Motor Company. The Manesar plant is expected to have an initial annual capacity of a lakh cars, which could be further enhanced to 3 lakh. In September this year, Suzuki had requested the Centre to grant SEZ status to its upcoming facilities at Manesar and its future expansion. The company had also asked for corporate tax exemption for 10 years, as well as duty exemption on imported components and raw materials.
Maruti reported 11% growth in domestic sales to 50,308 in October 2006. Sales of its key segment comprising Alto, Wagon-R, Zen and Swift rose 23.5%, to 38,940 units. In the current financial year so far, this segment of MUL has recorded a strong 23.7% growth at 2.3 lakh units.
According to the recent findings of the TNS' 2006 four-wheeler total customer satisfaction study, Maruti and Honda were ranked highest in customer satisfaction.
Last month, the car major reported strong Q2 September 2006 results. The net profit jumped 40% to Rs 367.44 crore (Rs 262.66 crore). Net sales rose 13% to Rs 3,419.19 crore (Rs 3037.80 crore).The current price of Rs 939.50 discounts its first half April-September 2006 annualised EPS of Rs 49.50, by a PE multiple of 18.9. Market men are betting on MUL expecting it to be a beneficiary of rising incomes. The car major dominates the small car market in India.
As many as 2.2 lakh shares changed hands in the counter on BSE.The stock had dropped 1.1% on Tuesday (7 November) to Rs 943.90 following reports that the ministry of commerce and industry rejected the automaker's application for granting special economic zone (SEZ) status to its upcoming manufacturing facility at Manesar.
The stock has moved within a range since late September 2006. It moved between Rs 926 and Rs 982 since 25 September 2006. Heavy Industries Minister Santosh Mohan Deb said on Wednesday he had formally proposed the selling of the remaining 10% government stake in car maker Maruti Udyog. Suzuki holds 54.2% in the car maker.
An erstwhile joint venture between Suzuki and the Indian government, the latter offloaded its stake in Maruti Udyog through an IPO in 2003. It may be recalled that in 2004, the government with its remaining stake had used its clout to force Suzuki to route its major expansion plans for India through Maruti Udyog.
Meanwhile, as per reports, carmakers are expected to raise prices in the near future due to rising production costs and shrinking margins. In general, the prices would be hiked by up to 3% across most models.
As per recent reports, the ministry of commerce and industry rejected the automaker's application for granting special economic zone (SEZ) status to its upcoming manufacturing facility at Manesar in collaboration with Nissan Motor Company. The Manesar plant is expected to have an initial annual capacity of a lakh cars, which could be further enhanced to 3 lakh. In September this year, Suzuki had requested the Centre to grant SEZ status to its upcoming facilities at Manesar and its future expansion. The company had also asked for corporate tax exemption for 10 years, as well as duty exemption on imported components and raw materials.
Maruti reported 11% growth in domestic sales to 50,308 in October 2006. Sales of its key segment comprising Alto, Wagon-R, Zen and Swift rose 23.5%, to 38,940 units. In the current financial year so far, this segment of MUL has recorded a strong 23.7% growth at 2.3 lakh units.
According to the recent findings of the TNS' 2006 four-wheeler total customer satisfaction study, Maruti and Honda were ranked highest in customer satisfaction.
Last month, the car major reported strong Q2 September 2006 results. The net profit jumped 40% to Rs 367.44 crore (Rs 262.66 crore). Net sales rose 13% to Rs 3,419.19 crore (Rs 3037.80 crore).The current price of Rs 939.50 discounts its first half April-September 2006 annualised EPS of Rs 49.50, by a PE multiple of 18.9. Market men are betting on MUL expecting it to be a beneficiary of rising incomes. The car major dominates the small car market in India.
posted by SY at 4:12 PM
0 Comments:
Post a Comment
<< Home