Maruti Suzuki hikes prices of Swift, Grand Vitara

Car buyers planning to buy Maruti Suzuki cars will have to shell more as India's largest passenger vehicle maker has announced an increase in the prices of Swift and selected variants of Grand Vitara, effective today.

The prices of the Maruti Suzuki Swift have been raised by up to ₹25,000 and the Grand Vitara Sigma variant by ₹19,000.

"The Company announced an increase in prices for Swift and selected variants of Grand Vitara w.e.f. today i.e. 10th April, 2024. Prices of Swift have been raised by up to Rs 25,000/- and Grand Vitara Sigma variant by Rs. 19,000/-," an exchange filing by the company says.

Before this, Maruti Suzuki had increased prices across the model range in March 2023, which were effective from April 2023.

The stock of Maruti Suzuki is trading 1.75% at ₹12,665.65 on the BSE today. At this price, the scrip is trading 2.3% lower than the 52-week high of ₹12,980 achieved on Tuesday i.e. April 9, 2024. With this, the company's m-cap remains at ₹3.9 lakh crore.

The stock of Swift and Brezza maker has surged 48.03% in the past year, with a 22.89% surge recorded in the calendar year alone. On a six-month, one-month and one-week basis, the company stock has given 21.70%, 10.76%, and 1.61% returns, respectively.

The leading PV manufacturer on Tuesday announced that it commissioned another vehicle assembly line at its Manesar facility, which has been added to its existing Plant-A of the 3 manufacturing plants at Manesar. The new vehicle assembly line has the capability to manufacture 100,000 units per annum, which would raise Maruti's total manufacturing capability at Manesar to 900,000 vehicles per annum.

The company says cumulatively, the Manesar facility has contributed over 95 lakh units in Maruti Suzuki’s 3 crore production milestone, with models like Brezza, Ertiga, XL6, Wagon R, Dzire, S-Presso, Ciaz and Celerio being manufactured here.

Maruti Suzuki plans to increase its production capacity to about 4 million cars per annum by 2030-31, almost double from current levels. In January, the carmaker said it was planning to invest ₹35,000 crore to construct a new greenfield manufacturing facility in Gujarat. The new unit, expected to start operations in 2028-29, will produce an additional 1 million units annually.

Brokerage major KR Choksey, in this week's report on the company, maintained its "BUY" rating on the Maruti Suzuki stock, saying the company is likely to see industry-beating volume growth in FY25E due to a strong order book, low inventory levels and continued demand for the SUV segment.

"We expect a revenue/EBITDA/PAT CAGR of 13.9%/21.1%, and 26.4%, respectively, over P/E multiple of 28.x on FYE EPS of ₹531 (earlier 24.4x on FY26E EPS of Rs 507) to arrive at a target price of ₹14,975 per share (revised from ₹12,385 earlier," the brokerage says in its April-8 report.