Maruti Suzuki
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Maruti Suzuki's management is optimistic about the company's growth trajectory, emphasizing a multi-powertrain strategy and significant capacity expansions aimed at reaching 4 million units by FY 2030-31. Recent earnings calls highlighted robust domestic and export demand, with a notable backlog of unfulfilled orders, indicating strong market positioning. However, the company faces near-term margin pressures due to geopolitical commodity inflation and rising energy costs. Vista's financial outlook reflects stable revenue growth and margins, supported by the ongoing ramp-up of new production facilities and a diverse product pipeline, including seven new SUVs planned by 2030. The automotive industry is experiencing a favorable environment, driven by strong consumer demand and a shift towards electric vehicles, which aligns with Maruti's strategic initiatives. Over the next 12-24 months, key opportunities include the successful integration of new manufacturing plants and the expansion of the EV portfolio, while watchpoints include ongoing geopolitical risks and commodity price volatility that could impact margins
Why We Like This Stock
- Strong domestic and export demand with a significant backlog of orders supports revenue growth
- Strategic capacity expansions and a diverse product pipeline enhance competitive positioning
- Management's focus on a multi-powertrain strategy aligns with industry trends towards electric vehicles
Things To Watch Out For
- Margin pressures from geopolitical commodity inflation and rising energy costs could impact profitability
- Integration of new production facilities may face operational challenges in the short term
- Ongoing geopolitical risks could affect export volumes and overall market stability
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 141,858 | 152,913 | 183,316 | 207,302 | 235,586 |
| Profit Before Tax (Cr.) | 17,434 | 19,558 | 19,118 | 18,682 | 22,885 |
| PBT Margin | 12.3% | 12.8% | 10.4% | 9.0% | 9.7% |
| Net Profit (Cr.) | 13,769 | 15,688 | 14,799 | 14,502 | 17,764 |
| Earnings Per Share | 437.9 | 499.0 | 470.7 | 461.3 | 565.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Nomura | ► Neutral | 14,071 | 20-Aug-2026 |
| UBS | ► Neutral | 13,970 | 19-Aug-2026 |
| Jeffries | ▲ Buy | 16,500 | 09-Aug-2026 |
| BofA | ► Neutral | 14,700 | 03-Aug-2026 |
| Citigroup | ▲ Buy | 16,500 | 03-Aug-2026 |
| Emkay Global | ► Add | 15,500 | 03-Aug-2026 |
| HSBC | ▲ Buy | 16,000 | 03-Aug-2026 |
| Kotak Securities | ► Add | 14,600 | 03-Aug-2026 |
| Morgan Stanley | ▲ Overweight | 16,381 | 03-Aug-2026 |
| Prabhudas Liladhar | ► Accumulate | 15,000 | 03-Aug-2026 |
| Motilal Oswal | ▲ Buy | 17,059 | 01-Aug-2026 |
| JPMorgan | ▲ Buy | 16,415 | 06-Jun-2026 |
| Axis Securities | ▲ Buy | 14,620 | 29-Apr-2026 |
| BOB Capital Markets | ▲ Buy | 16,734 | 29-Apr-2026 |
| Bernstein | ▲ Buy | 18,200 | 29-Apr-2026 |
| Deven Choksey | ▲ Buy | 17,315 | 29-Apr-2026 |
| Elara Capital | ▲ Buy | 16,546 | 29-Apr-2026 |
| ICICI Securities | ▲ Buy | 16,750 | 29-Apr-2026 |
| Moneycontrol | ► Equalweight | nan | 29-Apr-2026 |
| Nuvama | ▲ Buy | 15,800 | 29-Apr-2026 |
| Goldman Sachs | ▲ Buy | 15,800 | 27-Apr-2026 |
Company Overview
Show Company Profile
Maruti Suzuki India Limited manufactures and sells motor vehicles, parts, and accessories in India. The company offers passenger and commercial vehicles, including hatchbacks, sedans, SUVs, MPVs, and vans, as well as light commercial vehicles. It is also involved in the facilitation of pre-owned car sales, fleet management, and car financing activities. In addition, the company offers driving school, insurance, accessories, and financing products and services. It also exports its products to South Africa, Saudi Arabia, Chile, Japan, Mexico, and internationally. The company was formerly known as Maruti Udyog Limited and changed its name to Maruti Suzuki India Limited in September 2007. The company was incorporated in 1981 and is headquartered in New Delhi, India. Maruti Suzuki India Limited operates as a subsidiary of Suzuki Motor Corporation.