Maruti Suzuki India shares hit Rs 13,000 for 1st time; where is the stock headed?

Maruti Suzuki India shares hit Rs 13,000 for 1st time; where is the stock headed?

Maruti Suzuki India Ltd shares hit Rs 13,000 level for the first time ever in Monday’s trade, with the market capitalisation of India’s largest car maker topping 4.09 lakh crore, ahead of its March quarter results on Friday, April 26.

On Tuesday, the Maruti Suzuki India stock hit a record high of Rs 1,3010 and was up nearly 2 per cent. The fourth quarter is usually seasonally the best quarter for passenger vehicle players on YoY and QoQ basis. Motilal Oswal noted that the PV segment posted healthy growth of 19 per cent YoY and 20 per cent QoQ, whereas other segments saw a slowdown in demand

For the March quarter, Axis Securities expects 54.9 per cent YoY rise in profit at Rs 4,064 crore on 20.4 per cent YoY rise in sales at Rs 38,585 crore. Ebitda margin is seen expanding to 13.5 per cent from 11.7 per cent sequentially.

“We expect total revenue to increase 20.4 per cent YoY due to higher  overall unit sales, better product mix- Higher absolute number of SUV and  export sales. Ebitda may outpace the top line growth YoY led by richer product mix  (higher share of SUV), price hikes taken during the period and RM cost tailwinds. Ebitda margins likely to improve 300 bps YoY ( up 175 bps QoQ) on  price hikes, richer product mix, favourable forex and RM tailwind over the last year,” it said.

BNP Paribas in its quarterly review expects Maruti Suzuki India to report 21 per cent YoY rise in sales, driven by a 13 per cent YoY rise in volume and higher UV mix. It sees Ebitda margin at 12.4 per cent, up 197 bps YoY and 69 bps QoQ, thanks to higher operating leverage, better cost control and superior sales mix.

Update on current waiting period for models and order book size, especially on new launches; demand outlook for FY25;  rural and urban demand trends; cost-control initiatives; industry discounting trends; commodity price outlook for FY25; the average price hike taken during the quarter and any new update on EV model launch timeline will be keenly watched, it said. The brokerage has a target of Rs 12,200 on the stock.

InCred Equities, which has a target of Rs 12,554 on Maruti Suzuki India shares, said strong double-digit EBIT margin sustenance could drive the upgrade while volume growth recovery and success  of new launches will be gradual to come through.

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