Jefferies has maintained its buy rating on Maruti Suzuki, raising the target price to ₹14,750 from ₹13,600 per share. The stock was trading at ₹12,521.00 at the time of the report, reflecting a potential upside of over 17%.
In its analysis of the Q1 performance, Jefferies noted that EBITDA declined 11% year-on-year, even though the company reported a strong improvement in average selling price (ASP). The gain in ASP, however, was offset by a decline in margins, highlighting ongoing cost and competitive pressures.
While the brokerage remains optimistic about demand, it has revised its FY25–28 industry volume CAGR estimate downward from 8% to 6%, citing a more tempered outlook. A continued fall in Maruti’s passenger vehicle (PV) market share also remains a concern.
Looking ahead, Jefferies expects a new internal combustion engine (ICE) SUV launch in FY26, while exports continue to grow strongly. The firm estimates 12% CAGR in earnings per share (EPS) over FY25–28, underpinned by product pipeline and operational levers.
Disclaimer: This article is based on Jefferies’ stock research report. The views and target price mentioned are theirs. This does not constitute a recommendation to buy or sell any stock. Please consult a registered financial advisor before making any investment decisions.
