Vitara Brezza helps Maruti for a smooth take off

Maruti Suzuki , while maintaining its leaderhip in the passenger vehicle segment in India, has managed to increase its sales by almost 12 per cent, primarily due to positive response from consumers for the Vitara Brezza.

Apart from the Vitara Brezza, Maruti Ciaz and other compact SUVs have helped the company improve its sales growth.

The exports have grown by almost 10.8 per cent YoY to 12,280 units. Maruti has sold in all 16,806 units in the month of August, again showing a growth of almost 11 per cent YoY. Vitara Brezza , Ertiga & S-cross have helped the company deliver such an impressive performance.

Interestingly the mini cars' segment (Alto & Wagon R) have shown a de-growth of 6 per cent. With the 7th pay commission the company can expect to see some demand improvement for its vehicles. Clubbed with rising demand and improvement in margins the stock is being re-rated as "buy", by some of the leading broker houses such as Credit Suisse.

The stock is trading at Rs 5075, up by Rs 20 or 0.40 per cent on Thursday at 12.30 p.m. Over 1 year Maruti has managed to deliver almost 21 per cent returns, thus outperforming the markets. Sensex is trading flat to negative at 28427, down by 24 points.