Morgan Stanley has reiterated its ‘Overweight’ rating on Maruti Suzuki, setting a target price of ₹14,942, implying a 25% upside from the current market price of ₹11,953.
The brokerage noted that Maruti delivered an in-line performance in Q3 FY25, with EBIT margins remaining impressive despite higher discounts. When analyzing Q2 and Q3 combined, Maruti’s EBIT grew 3% YoY, with margins at 9.7%, reflecting a 50 bps YoY decline, including a 100 bps YoY hit due to discounting.
The report also highlighted Maruti’s strong export performance, which grew 38% YoY and contributed 18.4% of total Q3 sales. Additionally, the company is gearing up to launch production of its pure-electric model, the e-Vitara, in the coming months.
In Q3 FY25, Maruti reported revenue, EBITDA, and EBIT growth of 16%, 14%, and 16% YoY, respectively, showcasing its operational strength amid a challenging demand environment.
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