HSBC has maintained its Buy rating on Maruti Suzuki, setting a target price of Rs 14,500, indicating a 16% upside from the current market price of Rs 12,551. The brokerage noted that the passenger vehicle (PV) industry demand remained muted during Navratri, with a 3% year-on-year growth.
In the two-wheeler (2W) segment, sales grew by 12%, which was in line with expectations. However, HSBC pointed out that high inventory levels and an uncertain demand pick-up make weak Q3 dispatches from Maruti likely.
Despite these challenges, HSBC retains its Buy rating due to relatively undemanding valuations and the potential for product launches in 2025 to drive growth.
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