Tuesday, December 22, 2009

Higher dividend from Maruti Suzuki doubtful this time too

Maruti Suzuki, the largest auto maker in India, is doubtful to give higher dividend to its shareholders this time too as against its counterparts in India. The company is earning robust revenues and profits this year but poor distribution of dividend to its shareholders. It is to be mentioned that stock price of the company has trebled since the beginning of the current year. Let's see the dividend data of last year's. Maruti Suzuki paid a total dividend of Rs 101 crore that is less than 10 per cent of its net profit. On the other hand, Mahindra & Mahindra and Tata Motors use to distribute almost a third of their net profits in the form of dividends. The strategy forced Maruti Suzuki's shareholders to depend on the vicissitudes of the stock market to make money from this stock. It is also widely believed that the strategy to give lesser dividends might not change in the near future.

Maruti Suzuki
cars segment. Maruti Suzuki is leading the segment with two-third market share. It also controls over 50 per cent of the home market. Similarly, the company is growing leaps and bounds at the export front and its the leading suppliers of fuel-efficient cars to European markets. Around 15 per cent of its total production accounts for export only. There are two major launches are scheduled in the next few days that is Volkswagen Polo and Ford Figo.

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Wednesday, December 2, 2009

Tata Motors and Maruti Suzuki shares shine in the early trade

Shares of Tata Motors an Maruti Suzuki shone at the early trade on Wednesday. Tata Motors jumped 4 per cent to Rs 730 on the BSE while Maruti Suzuki closed moved up 1.5 per cent at Rs 1,612. On the other hand, Mahindra and Mahindra dipped 1 per cent to Rs 1,066 and traded of 181,871 shares.

BSE

Banks and autos lead the rally in the day but continue the trend at the end. India's leading auto makers reported a record 63 per cent sales growth in the last month-November. Among the all leading auto companies, eight firms contributed over 90 per cent of the India's total domestic car sales. The sales figures is expected to do well in the coming days as a couple of international car companies are going to launch new vehicles in India like Volkswagen Beetle and Volkswagen Touareg on 4th December.

Overall, Sensex closed with a loss of 28.36 points at 17,169.91 points due to profit booking at the end of the day. The Sensex moved between 17,329 to 17,142 points during the whole day. A weak European opening added more trouble for the domestic market. On the other hand, the National Stock Exchange index Nifty closed flat with a gain of only 1.25 points at 5,123 points.

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