Shares of the country's leading automaker Maruti Suzuki India Limited (MSIL) tanked over 4 per cent to hit an intraday low of Rs 7,951 on BSE after the company reported a 7.4 per cent year-on-year decline in total passenger vehicle sales at 133,948 units in February 2022.
The automaker had sold a total of 144,761 units in the corresponding month last fiscal.
The stock opened 0.89 per cent lower at Rs 8,235 against the previous close of Rs 8312.35 on BSE. With a market capitalisation of more than Rs 2,40,000 crore, the shares stand higher than 100 day and 200 day moving averages but lower than 5 day, 20 day and 50 day moving averages.
Meanwhile, the company sold a total of 164,056 units in the said month. The total sales in the month include domestic sales of 137,607 units, sales to other OEM of 2,428 units and its highest ever monthly exports of 24,021 units.
"The shortage of electronic components had a minor impact on the production of vehicles which are primarily sold in the domestic market. The company took all possible measures to minimise the impact," Maruti Suzuki said in a regulatory filing.
According to MarketsMojo, the stock is trading at a premium compared to its average historical valuations and has a very expensive valuation. It is technically in a Bullish range and multiple factors for the stock are Bullish like MACD, KST and OBV.
Also, the company has high institutional holdings at 38.89 per cent.
Recently, the company is expecting production activity to improve in the current quarter with gradual improvement in the supply of critical electronic components, a senior company official has said.
The auto major is also looking at ways, including bolstering its SUV portfolio, to get back to 50 per cent market share in the domestic passenger vehicle segment in the years ahead.
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