Maruti Suzuki, India’s leading auto-giant player, is in the spotlight after announcing its Q3FY25 earnings on January 29. While the company posted growth in revenue and profit, the results fell short of market expectations. Most brokerages are pinning hopes on the company’s SUV offerings. Interestingly, Maruti Suzuki is also a prominent play in the CNG and the hybrid segments. Hybrids, especially have been attracting favourable tax rebates in many states.
Maruti Q3: What’s the brokerage view?
After the announcement of the Q3FY25 earnings, several leading brokerages have shared their views on Maruti Suzuki’s performance and future outlook. Here is what they had to say:
Nuvama: Bullish on growth prospects
Nuvama remains positive on Maruti Suzuki, citing strong SUV growth and a potential boost from the e-Vitara launch. Furthermore, the brokerage firm projects a 11% revenue CAGR and 10% EBITDA CAGR over FY25–27.
“We forecast a revenue/EBITDA CAGR of 11%/10% over FY25–27E, led by robust growth in SUVs and moderate growth in cars. Retain ‘BUY’ with an unchanged TP of INR13,900 based on 27x FY27E core EPS plus cash of INR2,036/share,” added the firm in its report.
Morgan Stanley: Overweight with a higher target
Morgan Stanley continues to have an Overweight stance, setting a target price of Rs 14,942 per share. The brokerage firm remains optimistic about Maruti’s EBIT margin, which remained strong despite high discounts and subdued demand growth. Exports have been a standout, up 38% YoY, and now account for 18.4% of Q3 sales. Moreover, the brokerage firm expects solid growth going forward with a stable Q3 showing 16%, 14%, and 16% growth in revenues, EBITDA, and EBIT, respectively.
BofA: Positive with Rs 14,000 Target
BofA also maintains a ‘BUY’ rating, setting its target price at Rs 14,000 per share. The brokerage firm expects that despite a small miss in Q3, volumes and margins will improve in the coming quarters. BofA sees the ongoing discount drag as manageable, with an improved outlook for Q4.
Jefferies, Macquarie cautious on Maruti Suzuki. However some brokerages have also taken a cautious stance. Jefferies is Neutral with Rs 12,123 target. They have retained a ‘HOLD’ rating,
Macquarie also holds a neutral view, assigning a target price of Rs 12,296.
Maruti Suzuki Q3FY25 earnings
Maruti Suzuki reported a 16.22% YoY rise in consolidated net profit, reaching Rs 3,726.9 crore, up from Rs 3,206.8 crore in Q3FY24. The company’s total revenue from operations increased 15.7% YoY, touching Rs 38,764.3 crore compared to Rs 33,512.8 crore in the previous year.
Maruti Suzuki reported a standalone net profit of Rs 3,525 crore for the quarter, a 13% YoY growth. The company’s EBITDA stood at Rs 4,470.3 crore, a 14.4% YoY increase. The EBITDA margin was slightly lower at 11.6%, compared to 11.7% in Q3FY24.
Maruti Suzuki stock performance vs Nifty 50
Maruti Suzuki share price has seen notable fluctuations over the past year. With a market capitalisation of Rs 3.77 lakh crore, the Maruti Suzuki share price is currently priced at Rs 11,997.10, a modest dip of 0.08% in the past five days.
Over the past year, it has delivered a return of 20.58%. The stock has ranged from a 52-week low of Rs 9,913 to a high of Rs 13,680.
In comparison, the Nifty 50 index, over the last five days, it has risen by 0.17%. However, it has faced a downturn of 6.38% over the past six months.
