Buy Maruti Suzuki India; target of Rs 13,407: KR Choksey

KR Choksey is bullish on Maruti Suzuki India has recommended buy rating on the stock with a target price of Rs 13,407 in its research report dated October 30, 2024.

Broker Research

October 31, 2024 / 11:51 IST

Buy

26 Aug, 2025 12:21

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KR Choksey's research report on Maruti Suzuki India

MSIL, sold 541,550 vehicles during Q2FY25, declined by 1.9% YoY (+3.8% QoQ). Revenue for the quarter stood at INR 374,492 Mn, up by 0.3% YoY/ (+4.7% QoQ), which is in line with our estimates. EBITDA was at INR 49,988 Mn, declined by 6.1% YoY (-2.1% QoQ), which is largely in line with our estimates. PAT stood at INR 31,025 Mn, declined by 18.1% YoY (-17.5% QoQ), missed our estimate, mainly due to a tax provision of INR 8,376 Mn accounted for the quarter. We lower our FY25E/FY26E EPS by ~6.0%/~5.0% respectively, due to subdued domestic demand, rising costs, and deferred tax provisions. However, Improved rural markets are expected to drive hatchback demand, while plans to increase exports and CNG sales, along with hybrid vehicle growth, should enhance long-term margins and market share.

Outlook

We maintain our P/E multiple at 26.0x on FY26E EPS of INR 515.6 (previously: INR 544.1), resulting in a target price of INR 13,407/share (previously: INR 14,148). With a 21.4% upside potential, we maintain our ‘BUY’ rating on Maruti Suzuki India Ltd.

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