Find out what brokers have to say about Maruti Suzuki’s 2% rise in share as net profit soars to 48%

Maruti Suzuki’s stock price increased by more than 2% during the Monday morning trading session after the business reported strong Q4 earnings. Maruti Suzuki’s market value surpassed Rs 4 lakh crore as its shares surged by up to 2.2% on the BSE, reaching Rs 12,966 a share.

 

The nation’s top passenger vehicle maker, Maruti Suzuki India, reported a net profit of Rs 3,878 crore for Q4FY24, a significant 48% increase over Rs 2,623 crore during the same time the previous year.

The company’s operating revenue saw a noteworthy 19.3% increase during the quarter, rising from Rs 32,048 crore to Rs 38,235 crore year over year (YoY).

Furthermore, Maruti Suzuki India passed a noteworthy benchmark in FY24 sales, selling more than 2 million cars overall. Comparing the March quarter’s total sales volume to the same time in the previous year, it increased by 13% to 584,031 units.

Maruti Suzuki India brokers
Regarding Maruti Suzuki India, Motilal Oswal

Reiterating its “BUY” recommendation, Motilal Oswal has set a target price of Rs 14,700, based on 26 times FY26 EPS. The stock is now selling at 25 times FY25E consolidated Earnings Per Share (EPS) and 22.5 times FY26E consolidated EPS.

In the most recent Motilal Oswal assessment on Maruti Suzuki India, there has been a little increase of 2-4% in the financial projection for FY25–26. According to the survey, Maruti Suzuki is expected to continue outperforming the industry growth in FY25.

The firm is expected to generate around 70 basis points of margin improvement to about 12.5% in FY25, principally driven by an improved product mix, even if the bulk of input cost advantages are probably achieved.

According to the article, Maruti Suzuki’s stock may see a rerating in response to any prospective GST reduction or advantageous policies the government may implement regarding hybrid vehicles, as the firm stands to gain significantly from them.

Performance of stocks during the last year
Maruti Suzuki shares have performed well in terms of stock performance throughout a variety of time periods. The company has returned a respectable 3% over the last month, demonstrating its growth potential and stability. Even more remarkable results over the last six months have been seen, with a significant rise of 23.58%, showing a strong rising tendency.

Maruti Suzuki’s stock has increased by 24.94% so far this year, bolstering the company’s good momentum for the current fiscal year. Taking a more comprehensive view, the stock has produced a noteworthy return of more than 46.21% over the last 12 months, highlighting its steady development and appeal to investors.