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Stocks of Maruti Suzuki ended at an all-time closing high of Rs 4,155 on Wednesday, gain 2.6%, after foreign brokerage Credit Suisse increased goal cost for the shares to Rs 5,100, signifying a upside likely of 26% on the counter.

The share hopped 3.02% in trade to strike its fresh all-time high of Rs 4,171 and was the top performer on the BSE Sensex.It finally advanced the day 2.63% upper at Rs 4,155.The fresh aim cost set by Credit Suisse is 17% upper than the previous goal cost of Rs 4,370 Per stock. The brokerage anticipates that the 7th Pay Commission (PC), which is due to submit its note in October, is expected to result in a $15-billion increase to discretionary spending.

"We are assuming that the 7th PC suggestions would be implementing from July and are now building it in our numbers. We boost our local volume expansion estimate for FY17 from 17% to 23%, resulting in a nearly 9% boost in our FY17 estimate," it said. The brokerage barbed out that its FY17 estimates for the firm are near 20% upper than agreement estimate.

"As we have seen with FY16, where agreement estimate have always been improved on superior margins, FY17 estimates would see improved on upper volumes, in our outlook. We increase our TP to Rs 5,100 from Rs 4, 370," it said. The share has raised 24.80% so far this calendar, contrasted with a humble 0.30% increase in the BSE auto index.

For now, the brokerage thinks that the looming rise in the FII limit to 40% from 26% can be another activate for Maruti Suzki. It may assist the share being integrated once again in benchmark index such as MSCI in October, it said.Maruti was barred from MSCI in February 2013. In October 2014, the firm’s board permitted the boost in FII edges to 40% almost the highest likely, as Suzuki owns a 56 Per cent wager in the firm, the brokerage added.

Source : economictimes.com