CLSA has reiterated its ‘Outperform’ rating on Maruti Suzuki, raising its target price to ₹13,446 from ₹12,361, indicating a 12.5% upside from the current market price of ₹11,953.
The brokerage highlighted that Maruti incurred greater promotional expenses to push retail sales. However, it remains positive on the company’s long-term growth prospects, particularly as demand for CNG-powered cars continues to rise.
Additionally, Maruti has implemented a minor price hike (~30 bps) from mid-Q4 to offset fixed cost inflation. CLSA also sees a favorable total cost of ownership (TCO) advantage for Maruti as the CAFE 3 regulations approach, reinforcing its strong market share in the segment.
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