Maruti Suzuki shares are likely to be in focus after BofA Securities maintained a ‘Buy’ rating on the stock with a target price of Rs 14,000 per share.
BofA noted that Maruti reported a margin miss in the fourth quarter, with EBIT margins at 8.3%, down 120 basis points sequentially. The brokerage attributed the margin pressure to startup costs from the new plant (30 basis points impact), lumpy year-end expenses (90 basis points impact), and a weaker model mix.
BofA Securities mentioned that the drag from the new plant is expected to persist into the first quarter of FY26. However, it highlighted two positives for the company:
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A new SUV launch confirmed for FY26.
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A strong export growth guidance of 20%+.
At the current market price of Rs 11,650.00 per share, BofA Securities’ target price of Rs 14,000 implies a potential upside of about 20%.
Disclaimer: This article is for informational purposes only. Investors are advised to consult certified financial advisors before making any investment decisions.
