HSBC has issued a Hold rating on Maruti Suzuki, setting a target price of ₹14,000, indicating a potential upside of 27.2% from the current market price of ₹11,005.00.
Key takeaways from HSBC’s report:
- Q2 Margins: Margins in Q2 were weaker due to a challenging demand environment and high discounting pressures.
- Q3 Outlook: HSBC cautioned that Q3 could be even tougher for Maruti as demand pressures may persist.
- Long-term View: Business normalization is expected in FY26, driven by improved demand and new product launches.
- Valuation: HSBC considers Maruti’s valuations to be reasonable at current levels, with a potential upside if there are favorable tax cuts on hybrid vehicles.
The target price reflects HSBC’s cautious near-term outlook but acknowledges potential for upside in the long run as market conditions improve.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should perform due diligence before making investment decisions.
