Is Maruti going to face a hurdle ahead? Macquarie sees over 9% decline in stock price

Shares of Maruti Suzuki India (MSIL), India's largest car manufacturer, traded in the red in the early trade on Friday, February 23, after the brokerage firm Macquarie turned neutral on the counter with a target of Rs 10,608, implying a downside of over 9 per cent.
 
The brokerage anticipates a market loss for the company in the entry-level category priced in the range of Rs 4,00,000–Rs 700,000. The changing market mix will pose challenges to the company's market share. The brokerage is of the view that, in the near term, the demand for small cars will remain tepid.
 
Macquarie noted that the company's valuation, at 24.5x FY26E PE, is in line with its long-term average. In the auto segment, the brokerage is bullish on Tata Motors and TVS Motor and has listed them as its top picks. Other stocks where the brokerage is positive are (in the pecking order) Tata Motors, TVS, Hero MotoCorp, and Maruti Suzuki.
 
Citi earlier, amid its optimism for Maruti Suzuki, signalled a buy on the counter. The brokerage expects the company's volume to move northward. So, maintaining its optimistic stance, the global brokerage maintained a buy on the counter for a target of Rs 14,200, signalling an up to 24 per cent upside in the heavyweight stock.