Maruti Suzuki was the top Nifty gainer in a flat market on Wednesday. India's biggest car manufacturer beat volume and margin estimates in the second quarter despite a deadly riot at its Manesar plant that led to a $250 million production loss.
At 10.30 a.m., shares in Maruti Suzuki traded 2.5 per cent higher at Rs 1,425.55 against 1 per cent gains in the BSE auto index. The stock had gained 2 per cent on Tuesday.
Morgan Stanley retained its "overweight" rating on Maruti with a target of Rs 1,598 saying Q2 FY13 results were better than estimates. The investment bank expects margins and volume recovery on sequential basis to continue.
Maruti reported an EBITDA (earnings before interest, tax, depreciation and amortization) margin of 6.1 per cent against expectations of 5.6 per cent.
Nomura has a "buy" on Maruti with a target of Rs 1,617. Expect volumes and margins improvement to continue, Nomura said.
Barclays raised its earnings estimates on Maruti by 2-3 per cent for FY13-14.
Maruti expects sales growth to accelerate in the months ahead helped by the launch of new vehicles, after it posted a fifth straight quarterly profit decline. The company this month launched a cheaper and more fuel-efficient version of its Alto, the world's best-selling small car, in time for the festival season in October and November.
(With inputs from Thomson Reuters)
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