Mumbai: UBS upgraded its ratings on Maruti Suzuki India Ltd (MSI), the country's largest car maker, to "buy" from "neutral," and raised its price target to 2,000 rupees from 1,500 rupees, noting the weakening Japanese yen over the past three months would boost earnings.
Maruti Suzuki is also well positioned to benefit from improvements in petrol car sales, UBS added.
On Friday, MSI reported an over two-fold jump in net profit at Rs 501.29 crore for the third quarter ended December 2012, riding on good sales of new models like Ertiga and Swift DZire, and benefiting from low base effect. The company's net profit stood at Rs 205.62 crore during the same period last fiscal.
Net sales during the period under review stood at Rs 10,956.95 crore, up 45.57 percent from Rs 7,527.10 crore in the year-ago period, the company said in a statement.
MSI has also reportedly bought land in Gujarat for its fourth plant as it goes about raising its annual capacity to 3 million . MSI chairman, R C Bhargava, said earlier that the new plant would have a production capacity of about 750,000 cars a year.
"We have land at two locations in Gujarat. The first one is offered by the government and the second one is a private land that is directly acquired by us with some negotiations by the government," Bhargava said.
With inputs from Reuters