Maruti Suzuki tops gainers as brokerages sharply raise target on four-fold jump in profit

Maruti Suzuki stock price surged 2 per cent in trade on Monday as India's largest auto firm by sales posted stellar quarterly results wherein its profit/revenue jumped by 333/50 per cent to Rs 2061/Rs 28,543.50 crore, respectively. Brokerages remain bullish on the stock with Citi raising the target price on Maruti Suzuki shares by Rs 2800 apiece, suggesting a 29 per cent upside from the current market price levels of Rs 9,706.65. 

Markets lapped-up the better than estimated performance by Maruti in the July-September quarter as shared traded in large volumes on the exchanges. On BSE, the stock maintained its lead in terms of Total Traded Quantity ahead Reliance Industries, Bajaj Finance and Dr Reddy’s Laboratories. 

Brokerage firm City increased the target price to Rs 12500 per share from an earlier target of Rs 10300 on positive volume outlook and strong order book. 

Meanwhile, JM Financial increased its target to Rs 12000, estimating a 16 per cent upside on multiple tailwinds and strong order book. Nirmal Bang has given a target of Rs 11412 apiece. "New model launches in the coming months, healthy order book and commodity/currency tailwinds will further support strong performance going ahead. We ascribe 25x PE to arrive at Sept’23 fair value of INR 11,000. Maintain BUY," it said.  

Brokerages Estimates  

1) Citi maintain a Buy with target raised to Rs 12500 from Rs 10300 

2) Goldman Sachs maintain a Buy target raised to Rs 11250 from Rs 10600 

3) Jefferies raised the target price to Rs 12000 from Rs 11250  

4) HSBC maintains a Buy with revised target of Rs 11000 from Rs 10100  

5) Morgan Stanley maintains Overweight with Target 9839. 

Also Read: Stock Markets Today LIVE UPDATES: Sensex opens above 60000, up 500 points; Nifty50 above 17900 as Dr Reddy's, HUL lead 

The stock has seen a strong rally and has appreciated nearly 12 per cent over the last five trading sessions. 

Price Movement  - Intraday Chart 

Source:NSE

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