Investec has reiterated its buy rating on Maruti Suzuki India Ltd (MSIL) and raised its target price to ₹18,475, citing multiple structural and cyclical drivers that position the automaker strongly for the next demand upcycle. The brokerage said Maruti is likely to be a key beneficiary of GST rate rationalisation and monetary easing measures, given its high exposure to the price-sensitive small car segment.
Investec added that the recent launch of the Victoris mid-size SUV should further strengthen Maruti’s presence in the fast-growing SUV category, while exports remain robust, supported by strong demand for models like the Fronx and Jimny, the ramp-up of e-Vitara production, and a widening global footprint. Another growth catalyst is the 8th pay commission, expected in 2026, which could aid demand as nearly 15% of Maruti’s customer base comprises government employees.
On valuations, the brokerage said the stock currently trades at 29 times FY27 estimated earnings, slightly above its five-year average of 28 times, which remains supportive given the strong earnings growth visibility.
Disclaimer: The views and recommendations made in this article are those of Investec. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
