The stock of Maruti Suzuki on Wednesday managed to post a decent show as the company received Rs 5,786 crore tax demand notice on Tuesday.
The stock rose as much as 1.3 percent during the early trading hours to Rs 13,174.55 compared to its previous close of Rs 12,993.55 apiece. However, the stock shed some gains to trade at around Rs 13,125 with a premium of about 1 percent from the previous close.
However, the Wednesday rise in the stock was somewhat milder than its peers Mahindra & Mahindra and Tata Motors Passenger Vehicles.
While the former rose as high as 3.2 percent to around Rs 3,228 apiece, the latter hovered at a premium of 3.3 percent to trade at Rs 326.
However, the stock of Hyundai Motors remained muted on Wednesday, managing a surge of less than 0.5 percent during the day.
The range bound performance of Maruti on Wednesday came as India’s largest carmaker reported on Tuesday that it has received an income tax demand order for Rs 5,786 crore.
In an exchange filing, the company said that the tax demand was received for financial year 2022-23.
“The Company has received a Draft Assessment Order for the FY 2022 – 23 wherein certain additions/disallowances amounting to Rs 57,864 million with respect to returned income (the income disclosed by the Company in its Income Tax return) has been proposed,” it said in the filing.
It further assured to file an objection against the order before the Dispute Resolution Panel. The company clarified that the notice will not have any impact on its financial or operational performance.
Despite the development, the shares of Maruti Suzuki India traded over 1 percent higher on Tuesday. This performance was followed on Wednesday as well.
The company has recently forayed in to the emerging electric vehicle domain and has announced plans to focus on SUVs as customer preferences evolved.
