Maruti Suzuki stock slips to fresh 52-week low after flat sales growth Noor Arora
The stock price of Maruti Suzuki, country’s biggest car maker slipped to a fresh 52-week low today after the company reported a growth of less than a per cent in domestic sales for the month of September. Ahead of the festive season in October, September was anticipated to be a month of high growth in sales. The Suzuki promoted company, which sells every second car in the country, sold 151,512 units of passenger vehicles (cars, vans and utility vehicles) to dealerships, showing a growth of just 0.7 in domestic sales. The company’s mini segment, under which cars like Alto and WagonR are sold, reported a decline of nine per cent to 34,971 units. The compact segment, under which best sellers like Baleno and Swift are sold, reported a sub-two per cent growth to 74,011 units. The stock price of the country’s most valuable auto maker, which hit an all time high of Rs 10,000 in December last year, is now down over 27 per cent, wiping out several billions of Rupees in market cap. The company’s announcement of sales number for September did not explain the reason behind the low growth in September.
ARTICLE SOURCE: BS