UBS has retained its Buy rating on Maruti Suzuki, though it has trimmed the target price to ₹14,800 from ₹15,200, indicating a potential upside of 34.5% from the current market price of ₹11,005.00.
Key insights from UBS’s report:
- Q2 Miss: Maruti’s Q2 performance missed expectations, primarily due to gross margin contraction affecting EBITDA. However, adjusted PAT came in above estimates.
- Positive Outlook: UBS noted that demand and margin outlooks are better than initially feared. The firm retains its positive stance on Maruti due to attractive valuations.
- Festive Demand: Strong demand during the festive season is expected to support performance, with inventories and discounts reportedly under control.
UBS’s revised target reflects cautious optimism, emphasizing Maruti’s potential upside due to improving demand dynamics and valuation appeal.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should perform due diligence before making investment decisions.
