Domestic car market leader Maruti Suzuki India Ltd on Monday saw its stock price plunge by over 12 per cent as a surprising decline in profit for the first three months of this fiscal spooked investors and sent market analysts into a tizzy.
“This is largely due to a sharp rise in the payment of royalty and technical fees (RTF) to its parent, Suzuki Motor, for use of its technology and brand,” said Vineet Hetamasaria, auto analyst and VP, Research, PINC. “MSIL did not keep investors in loop, they feel cheated.”
The MSIL stock declined 12.3 per cent to Rs 1191.05 per share, its highest ever intra-day fall in over 6 years. Japan’s Suzuki holds the majority stake in MSIL.