Maruti Suzuki share price jumps 4% to record high as strong Q1 results prompt analysts to raise stock target

Maruti Suzuki share price jumped nearly 4% to hit a record high on Thursday after the auto major reported robust Q1 results. Maruti Suzuki shares rallied as much as 3.85% to a high of ₹13,675.00 apiece on the BSE.

The country’s largest passenger car manufacturer Maruti Suzuki India reported a sharp jump of 47% year-on-year (YoY) in its net profit for the first quarter of FY25 at ₹3,650 crore. The company’s revenue in Q1FY25 increased 9.9% YoY to ₹35,531.4 crore.

Maruti Suzuki said it sold a total of 521,868 vehicles during the quarter, higher by 4.8% compared to the same period previous year.

EBITDA during the quarter jumped 50.9% YoY to ₹4,502 crore, while EBITDA margin expanded by 350 basis points to 12.7% from 9.2%, YoY.

Strong Maruti Suzuki Q1 results prompted brokerages to lift their target prices on Maruti Suzuki shares.

Here’s what brokerages have to say on Maruti Suzuki Q1 results and Maruti Suzuki share price:

JM Financial

JM Financial estimates revenue and EPS CAGR of 13% and 16% over FY24-27E for Maruti Suzuki. Pick-up in Strong Hybrid demand remains a key catalyst for re-rating, while revival in the entry level segment remains a key monitorable, it said.

The broking house maintained a ‘Buy’ rating and raised Maruti Suzuki share price target to ₹15,000 apiece from ₹14,250 earlier.

Emkay Global

Maruti Suzuki logged a strong Q1, with margins at 12.7% on normalization of a one-off in Q4, favorable Fx and RM costs, and cost efficiencies, partially offset by higher discounts. We remain cautious on PVs, as underlying metrics are weakening (moderating retails, higher inventory/discounts, and falling orderbook). Maruti Suzuki’s profitability has been resilient amid improved mix (SUVs and CNG); this drives a ~4% upgrade to FY25E/26E EPS, Emkay Global Financial Services said.

The brokerage firm builds in 5% and 12% volume and core EPS CAGR over FY24-27E. It retained a ‘Reduce’ raising on Maruti Suzuki shares and raised the target price to ₹12,000 apiece from ₹11,200 earlier.

Phillip Capital

Maruti Suzuki’s management is working hard to continue improving margins. It is focussed on SUVs, improving CNG and exports mix, continuing its cost reduction efforts, and improving capacity utilization which is 85% currently. The CNG variant is higher margin and is also seeing good adoption in more premium vehicles of Maruti, which augurs well for the company, Phillip Capital said.

It believes that hybrids are a great solution for India to reduce emissions vs ICE and Maruti being an early adopter is gaining experience and working towards building a hybrid portfolio which augurs well for the company’s profitability.

The brokerage firm maintained a ‘Buy’ call on Maruti Suzuki stock with a target price of ₹15,223 per share.

Motilal Oswal

MOFSL has marginally tweaked its estimates and expects Maruti Suzuki to continue to outperform industry growth over FY25-26E. While the bulk of input cost benefits are likely to be over, Motilal Oswal expects Maruti Suzuki to post a 90 bps margin improvement to ~12.5% in FY25E, largely led by an improved mix. This would in turn drive a steady 15% earnings CAGR over FY24-26E.

Any GST cut or favorable policy for hybrids by the government may drive a rerating as Maruti Suzuki would be the key beneficiary, it said. The stock trades at 26x/22x FY25E/FY26E consolidated EPS.

Motilal Oswal reiterates a ‘Buy’ rating on Maruti Suzuki shares with a target price of ₹15,160 apiece.

Technical View

Maruti Suzuki share price has been in a consolidation period for quite some time at around ₹12,000 - ₹13,000 levels and currently has given a breakout with a positive bullish candle pattern in the daily chart to signify strength and has potential to rise further in the coming days, said Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher Pvt. Ltd.

The RSI has indicated a steep rise showing a trend reversal to signal a buy and with consistent volume participation witnessed, she recommends to buy Maruti Suzuki shares for an upside target of ₹16,000 - ₹17,000 keeping a stop loss of ₹12,000.

At 10:45 am, Maruti Suzuki shares were trading 1.00% higher at ₹13,300.00 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.