Maruti falls 2%; Jefferies downgrades, slashes target

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26 Aug, 2025 12:21

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Moneycontrol Bureau Shares of Maruti Suzuki slipped 2 percent intraday on Monday. Jefferies has downgraded the auto major to underperform from buy. The brokerage has also reduced target price by 19 percent to Rs 3952 from Rs 4876 per share. Jefferies feels that changing capital allocation policy will make profits unpredictable for Maruti. Another concern that the brokerage has highlighted is Maruti's reduction of investments in manufacturing, and setting up new distribution network for premium cars. It also says that there is a lack of clarity on arrangement with Suzuki on new plant that will supply cars from FY18.“Near term outlook is very strong but positives in the price,” Jefferies says. Board of the four-wheeler manufacturer, meanwhile, has approved contract manufacturing agreement and lease deed proposed to be signed by the company with Suzuki Motor Gujarat (P) subject to the arrangement being approved by the minority shareholders of MSIL and regulatory approvals, if any. Maruti is facing selling pressures also due to disappointing sales data in September. The country's largest carmaker reported 3.7 percent rise in total sales in September at 1,13,759 units as against 1,09,742 units sold in the same month last year. Domestic sales increased by 6.8 per cent during the month to 1,06,083 units as against 99,290 units in September, 2014, Maruti Suzuki India (MSI) said in a statement.

Exports during the month declined by 26.6 per cent to 7,676 units as compared to 10,452 units in September last year, MSI said, adding that overseas shipment of around 3,500 units was delayed last month.

At 09:52 hrs Maruti Suzuki India was quoting at Rs 4,493.50, down Rs 86.35, or 1.89 percent on the BSE.Posted by Nasrin SultanaFollow @NasrinzStory