Maruti's having a good day. Know why

Shares of Maruti Suzuki rose 1.5 percent in weak trade after CLSA came out with a bullish report on the car maker with a price target of `4,450 per share.

Maruti rose 57 rupees to 3,992 on the National Stock Exchange with 112,000 shares changing hands. The company enjoys a market capitalisation of 1.20 lakh crore rupees and the stock has gained 7 percent in the last one month.

The global brokerage said in a note to clients Maruti has multiple catalysts in place to drive strong earnings growth in the coming quarters. Its product pipeline has four new launches in the year to March 2016 and based on these new additions, the New Delhi-based company is likely to gain market share over rivals.

CLSA expects Maruti's margins to expand in the coming quarters based on a weakening Yen, a cut in discounts and a fall in raw material costs, owing to weak commodity prices.

(Image credit: Indiatimes)