Maruti at new high; CLSA retains buy on launch & exports

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26 Aug, 2025 12:21

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Moneycontrol Bureau

Shares of Maruti hit record high at Rs 3464.95 per share, up 3 percent intraday on Monday CLSA has retained it as one of its top auto picks in 2015 with a target price of Rs 4400.

According to the brokerage, Maruti offers a confluence of multiple macro and company-specific positives over FY16-17 and multiple new products in ‘white spaces’ have the potential to boost its market share higher.  It estimates passenger vehicle industry growth improving from 4 percent in FY15 to 8 percent in FY16 and 15 percent in FY17.

CLSA also adds that exports will accelerate as Maruti enters new markets while margins should see a large expansion driven by Yen weakness, falling discounts and operating leverage benefits.

It expects Maruti’s market share to improve from 42.1 percent inFY14 to 46.8 percent by FY17. It is expecting exports to grow at 15 percent CAGR over FY15-17 as Maruti penetrates new markets in Africa and total volumes rising at 14 percent CAGR over FY15-17.

“We expect EBITDA margins to improve from 12 percent in 1HFY15 to15.4 percent in FY17 driven by Yen benefits, improving pricing power with demand revival, operating leverage benefits, and limited incremental competition. Maruti is likely to be capacity constrained in FY17, which should result in lower discounts,” CLSA says in a report.

At 10:29 hrs Maruti Suzuki India was quoting at Rs 3,460.00, up Rs 100.30, or 2.99 percent on the BSE.

(Posted by Nasrin Sultana)