Maruti shares hit record high as Credit Suisse raises target price

Shares of Maruti Suzuki India hit an all-time high of Rs 4,182 on Wednesday after the global investment bank Credit Suisse raised its target price to Rs 5,100 from Rs 4,370 earlier.

The share price of the India's largest car maker closed 2.63 per cent higher at Rs 4,155.

According to Credit Suisse, an expected hike in salaries of government employees based on recommendations of the seventh Pay Commission will result in higher sales for Maruti. About 25 per cent of central government and 20 per cent of state government employees will become eligible car buyers, making about 30 lakh employees target customers for the car manufacturer.

The investment bank has also increased Maruti's domestic volume growth estimates for 2016-17 to 23 per cent from 17 per cent earlier.

For the year ended March 2015, the company registered a consolidated gross sales of Rs 54,545.85 crore, up 12.40 per cent against Rs 48,530.45 crore last year. Consolidated net profit of the company jumped 33.46 per cent year-on-year to Rs 3,807.44 crore.

(With inputs from Reuters)