HSBC has maintained a ‘Buy’ rating on Maruti Suzuki, with a target price of ₹14,000 per share.
The brokerage believes that Maruti’s e-Vitara offers a strong value proposition against competitors, given its pricing and specifications.
Additionally, the Indian government’s recent move to increase import duties on Chinese CBUs and auto parts is expected to provide support for domestic manufacturers like Maruti.
HSBC believes that Maruti’s lower total cost of ownership (TCO) compared to rivals will help it gain strong traction in targeted markets, further bolstering its sales in the EV segment.
In the third quarter of fiscal year 2025, Maruti Suzuki India Ltd. reported a 16% year-on-year increase in consolidated net profit, reaching ₹3,726.9 crore, up from ₹3,206.8 crore in the same period last year. Total revenue from operations grew by 15.7% YoY to ₹38,764.3 crore, driven by robust sales of sport utility vehicles (SUVs) and record export figures. The company sold a total of 5,66,213 vehicles during the quarter, with domestic sales accounting for 4,66,993 units and exports hitting an all-time high of 99,220 units. Despite the positive performance, the EBITDA margin experienced a slight decline, settling at 11.6% compared to 11.7% in the previous year, attributed to higher discounts and increased sales promotion expenses.
