Maruti Suzuki shares price drops after August 21′ production sink  

Maruti Suzuki India share price was trading in the red, down half a percent in the morning on September 8 after the company came out with its August production numbers.

Maruti Suzuki in an exchange filing said that its August production was down 7.9 percent at 1.14 lakh units against 1.24 lakh units (YoY). Production volume of August was affected due to electronic components shortage, it said.

The stock was trading at Rs 6,831.35, down Rs 45.15, or 0.66 percent. It has touched an intraday high of Rs 6,856.30 and an intraday low of Ra 6,801.55.

Himanshu Gupta, VP- Research at Globe Capital has buy call on the stock with target of Rs 7150 per share. “After a prolonged correction, this stock is finally looking poised for giving sharp upside move in the short term. After a good rally, the stock has been consolidating within a small triangular pattern for the past few days, while short-covering activity was clearly visible on the derivatives side during the same period,” he said.

“Besides, we expect auto stocks to do a catch-up rally and Maruti looks posed to lead from the front,” he added.

The company decided to hike prices for select models with effect from September 6. In continuation to its communication on August 30, 2021, with effect from September 6, 2021, the company announced a price change for select models owing to an increase in various inputs costs, India’s largest carmaker said.

Maruti Suzuki, India’s largest carmaker will see 60 percent cut in production in September due to a shortage in supply of semiconductors. This is the second consecutive monthly cut seen by the company due to the chip shortage.