Buy Maruti Suzuki; target of Rs 18197: Motilal Oswal

Motilal Oswal is bullish on Maruti Suzuki has recommended buy rating on the stock with a target price of Rs 18197 in its research report dated January 28, 2026.

Broker Research

January 30, 2026 / 21:02 IST

Buy

Motilal Oswal's research report on Maruti Suzuki

Maruti Suzuki’s (MSIL) 3Q adj PAT grew 16% YoY to INR42.5b, below our estimate of INR44bn. Adjusted EBIT was 7% below estimate. Despite a 21% QoQ increase in volumes, EBITDA margin expanded just 40bp and was impacted by multiple cost headwinds. The benefits from GST rate cut, along with a healthy new-launch pipeline, are likely to help drive market share gains for MSIL. Market share recovery is expected to, in turn, drive a re-rating for the stock. Exports is likely to remain the other key growth driver. However, given the weaker-than-expected performance in 3Q, we have lowered our estimates by 4%/7% over FY26E/FY27E. Overall, we expect MSIL to deliver a 16% earnings CAGR over FY25-28. Reiterate BUY with a TP of INR18,197, valued at 27x Dec’27E EPS.

Outlook

We expect MSIL to deliver a 16% earnings CAGR over FY25-28, driven by new launches and strong export growth. Reiterate BUY with a TP of INR18,197, valued at 27x Dec’27E EPS.

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