With the sentiment depressed on reports of 20.25% decline in net profit for the quarter ended June 30, share price of. Maruti Suzuki India (MSI) on Monday plunged more than 11% in the early trade. The company has recorded all round disappointing performance when the stock exchange as a whole also was reported to be flat due to lack of encouraging news.
The country’s largest car maker’s Shares fell 11.47% to touch a one-month low of Rs 1,202.40 on Bombay Stock Exchange. On the National Stock Exchange also, the company’s shares fell 17.03% to touch a year’s low of Rs 1,126.85. CNI Research CMD Kishore P Ostwal said. “I feel the results are not bad and the market is just overreacting. The stock should recover in a couple of days.” The 30-share benchmark Sensex was trading flat at 18,140.08, up 0.05%.
Maruti on Saturday had recorded 20.25% fall in net profit at Rs 465.36 crore for the quarter ended June 30. Net profit of the company was Rs 583.54 crore in the corresponding period last fiscal. But MSI’s total income from operations surged by 26.78% to Rs 8,231.53 crore in the first quarter, which was at Rs 6,493 crore in the year-ago period.