HSBC has maintained its buy rating on Maruti Suzuki India while raising the target price to ₹18,500 per share, citing a normalisation in market share and a supportive demand backdrop, even as margins emerge as the key near-term monitorable.
The brokerage noted that Maruti Suzuki’s market share has stabilised around 40%, reflecting a recovery from recent volatility. Overall passenger vehicle demand remains buoyant, supported by healthy retail traction and improving supply dynamics across segments.
HSBC emphasised that 3Q and 4Q margins will be critical for investor sentiment. The brokerage cautioned that an EBIT margin print below 10% could disappoint the market, especially given elevated expectations around operating leverage and cost efficiencies.
While the near-term outlook remains constructive, HSBC flagged commodity prices as a key risk, particularly if input cost pressures resurface. However, with “all stars aligned” in terms of demand recovery, product mix, and operational execution, HSBC believes Maruti remains well positioned to defend profitability and deliver steady earnings growth.
Disclaimer: The views and recommendations above are those of HSBC. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.