India’s biggest automaker Maruti Suzuki (NSE: MARUTI) Share has fallen 11 % in the past month. After this decline, brokerage firms advised investors to invest in this stock.
The brokerage believes that with an 11 percent correction, Maruti has now become attractive to invest and there is a good chance of profit from this stock in the coming time.
Today i.e. on Tuesday, the stock of Maruti Suzuki India Limited was trading at Rs 11,190 with a gain of 1.24 per cent at 11:35 am on NSE.
A top brokerage has said in his report that after strong demand (16% CAGR) in FY 22-24, volumes remained stable in the first half of FY 25.
Now with the festivals, retail sales have rebounded and are likely to grow in double digits compared to last year. Toyota/Suzuki’s global network and portfolio expansion (EVX) will lead to 12% volume CAGR in exports.
Maruti shares are trading at an attractive P/E of 19x/17x FY26e/27e EPS.
Sales Were Great In October
Maruti Suzuki recorded record sales in the month of October. The company sold 206434 units of vehicles in last month. Of this, domestic sales were 163130 units, exports were 33168 units and 10136 units were sold to other OEMs.
Profit Fell In Q2
Maruti Suzuki India’s net profit in the second quarter of FY 2024-25 (Q2FY25) fell by 18% to Rs 3,102 crore. The net profit of the company was Rs. 3,786 crore in the same period of last year’s financial year.
However, the total income from the company’s operations saw a marginal increase. Maruti Suzuki’s revenue in the second quarter was Rs 37,449 crore, while in the same period last year it was Rs 37,339 crore.
What Is The Target Price?
A renowned brokerage house has recommended buying Maruti Suzuki shares with a target price of Rs 13800. At the same time, Centrum Broking has given a BUY rating and the highest ever target price of Rs 16060.
Quick Fact
| Company name | Maruti Suzuki |
|---|---|
| Price Change | Fell 11% in one month |
| Investment Advice | Anand Rathi and Centrum Broking recommend buying |
| Growth Potential | Possible profit in coming time |
| Demand Growth | 16% CAGR in FY 22-24 |
| Sales Stability | Volumes stable in H1 FY 25 |
| Sales Growth | Double-digit growth expected in retail sales |
| Export Growth | 12% volume CAGR in exports |
| P/E Ratio | Attractive at 19x/17x FY26e/27e EPS |
| October Sales | Total: 206,434 units (Domestic: 163,130, Exports: 33,168, OEMs: 10,136) |
| Q2 Profit | Fell 18% to ₹3,102 crore |
| Q2 Revenue | ₹37,449 crore (previous year: ₹37,339 crore) |
| Possible Target Price | ₹13,800 (Anand Rathi) |
| Highest Target Price | ₹16,060 (Centrum Broking) |
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