Morgan Stanley has maintained its “Overweight” rating on Maruti Suzuki stock, setting a target price of ₹14,124 per share. This reflects a potential upside of approximately 19% from the current market price (CMP) of ₹11,837.00.
Key highlights from Morgan Stanley’s analysis:
- Valuation supports outperformance:
- Maruti’s valuation at 22x FY26E P/E is seen as supportive compared to its 10-year median of 26x.
- Positive short-term outlook:
- The stock is expected to outperform the broader market index over the next 30 days.
- Key catalysts:
- First EV launch: Maruti will unveil its first electric vehicle on January 17, marking a significant step in its product portfolio expansion.
- Exports outperforming expectations: Export performance has been better than anticipated, positively contributing to margins.
- Q3 expectations:
- The company is expected to report 13% EBITDA growth, with an EBITDA margin of 11.5%, signaling strong operational performance.
Morgan Stanley remains optimistic about Maruti Suzuki’s growth trajectory, driven by its competitive valuation, upcoming EV launch, and better-than-expected export performance.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Readers should perform their own research or consult a financial advisor before making investment decisions.
