CLSA raised its rating on the car maker to buy from sell and set a target price of `1,915 after upgrading its fiscal year 2014-15 earnings per share by 11-17%, mainly due to the weaker yen. (CLSA raised its rating on the car maker to buy from sell and set a target price of `1,915 after upgrading its fiscal year 2014-15 earnings per share by 11-17%, mainly due to the weaker yen.)
CLSA raised its rating on the car maker to buy from sell and set a target price of `1,915 after upgrading its fiscal year 2014-15 earnings per share by 11-17%, mainly due to the weaker yen.
(CLSA raised its rating on the car maker to buy from sell and set a target price of `1,915 after upgrading its fiscal year 2014-15 earnings per share by 11-17%, mainly due to the weaker yen.)

Maruti Suzuki shares surge on CLSA upgrade

The scrip jumped as much as 3.6% in intra-day trade to `1,599.90, a price last seen on 1 October 2009

Shares in Maruti Suzuki India Ltd rose to a 39-month high on Monday after CLSA Asia-Pacific Markets, a Hong Kong brokerage, upgraded the stock on improving earnings outlook.

The scrip jumped as much as 3.6% in intra-day trade to 1,599.90, a price last seen on 1 October 2009. It closed at 1,584, up 2.6%. The Sensex pared 0.47% to 19,691.42 points.

CLSA raised its rating on the car maker to buy from sell and set a target price of 1,915 after upgrading its fiscal year 2014-15 earnings per share by 11-17%, mainly due to the weaker yen.

“We expect Maruti’s Ebitda margins to recover to near-10% by FY15, driven by a weakening yen, improving product-mix and rising localization," CLSA analysts Abhijit Naik and Nitij Mangal said in a note.

Ebitda, or income before interest, taxes, depreciation and amortization, is an indicator of profitability.

The car maker reported an Ebitda margin of 7.3% in the financial year ended 31 March.

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