Maruti Suzuki shares will be in focus on Thursday, 30 January, after the company reported a 13% year-on-year (YoY) growth in its standalone net profit, reaching INR 3,525 crore, while revenue from operations rose 16% YoY to INR 38,492 crore. However, profit fell short of Street estimates, which had pegged it at INR 3,624 crore.
The company reported an EBITDA of INR 4,470 crore in the third quarter, a gain of 14% YoY. Margins, on the other hand, fell marginally to 11.6%.
Maruti sold a total of 566,213 vehicles during the quarter. Sales in the domestic market were 466,993 units, while the company exported 99,220 units, the highest-ever in any quarter.
In the same period last year, total sales amounted to 501,207 units, comprising 429,422 units in the domestic market and 71,785 units in export markets.
Should you buy, sell, or hold Maruti Suzuki's stock? Here's what analysts say:
Investec
Investec maintained a 'Buy' rating on Maruti Suzuki, revising the target price to INR 14,230 from INR 14,300.
The company delivered an operationally in-line performance, with management providing a moderately positive outlook on demand. They expect retail growth of around 3-5% YoY in Q4. Rural demand remains stronger than urban, with an uptick in entry-level hatchbacks and strong traction for the new Dzire. Exports, which accounted for ~15% of sales in 9MFY25, are now a key focus area, with select models set to be manufactured in India for global markets.
CLSA
CLSA maintained an 'Outperform' rating on Maruti Suzuki, raising the target price to INR 13,446 from INR 12,361.
The brokerage noted that the company incurred higher promotional expenses to boost retail sales. A minor price increase of approximately 30 basis points was implemented from mid-Q4 to offset fixed cost inflation. CLSA remains positive on Maruti Suzuki, citing growing demand for CNG-powered cars and a favorable total cost of ownership (TCO) as the CAFE 3 deadline approaches. The company continues to hold a major market share in this segment.
Jefferies
Jefferies maintained a 'Hold' rating on Maruti Suzuki with a target price of INR 11,300.
The brokerage noted that passenger vehicle demand remains subdued, with retail demand in Q4 expected to stay at similar levels. Maruti Suzuki's PV market share has slipped to a 12-year low, leading Jefferies to cut its FY25-27 EPS estimates by 2%. However, exports are growing well, and the brokerage expects volume and EPS growth of 6% and 11%, respectively, over FY24-27.
