Maruti Suzuki's market cap is now more than twice that of its parent Suzuki Motor Corp

Maruti Suzuki, which was about half the size of its Japanese parent—Suzuki Motor Corp—about ten years ago, has not only overtaken its parent in market valuation but also has overgrown two-fold. As of Friday, Maruti Suzuki, the country’s largest automaker, commands a market capitalisation of $46.9 billion, against Suzuki’s market cap of $22.1 billion, Bloomberg data shows. Maruti overtook its parent’s market cap for the first time in January 2015.

Unsurprisingly, the rally in Maruti Suzuki stock has been on the back of solid fundamentals. While the net revenue of Maruti Suzuki has increased at a compounded rate of 7.6% over the last five years to ₹1.13 lakh crore, its parent clocked 4.3% growth in revenue during the same period.

Similarly, the net profit of Maruti Suzuki grew at a compounded rate of 1% between FY19 and FY23, whereas Suzuki Motor saw just a half percent growth in its bottom-line during the same period. Suzuki Motor held 58.2% of Maruti Suzuki as of December 2023.