Maruti Suzuki India slips despite strong Q2 nos; here is what brokerages suggest

Maruti Suzuki share price NSE, Maruti Suzuki share price target 2023: Maruti Suzuki India (MSIL) shares on Monday, October 30, gave up initial gains to slip as much as nearly three per cent to day's low of Rs 10,245 on the NSE. India's leading car manufacturer reported its earnings for the quarter ended September 30, 2023, on Friday, October 27, during market hours, beating analysts' estimates by a big margin. Maruti Suzuki India shares ended 1.53 per cent lower at Rs 10,399 on NSE.

The company posted a standalone profit after tax (PAT) or net profit of Rs 3,716.5 crore for Q2, translating into an 80.3 per cent jump on a year-on-year (YoY) basis. The carmaker had reported a profit of Rs 2,061.5 crore in the year-ago period. Maruti said that the jump in net profit was on account of higher net sales, a softening of commodity prices, cost reduction efforts, and higher non-operating income.

The company's total revenue from operations came in at Rs 37,062.1 crore, up 23.8 per cent YoY. The company's operating earnings before interest, and tax (EBIT) jumped 95 per cent YoY to Rs 3,990.1 crore. Read more

Here's how the counter moved on Monday, October 30: 

Source: NSE

Maruti Suzuki India share price target: Here's what brokerages make of Maruti Suzuki India's Q2 earnings announcement

Morgan Stanley has maintained an overweight rating on Maruti Suzuki India. The global brokerage has raised the target to Rs 12,304 from Rs 11,963, translating an upside of over 16 per cent from the counter's previous close.

It said that upgrades to consensus earnings, rising market share, and gradual first-time buyer recovery keep the brokerage overweight on the stock. In addition, Citi has maintained a buy stance on the counter. The brokerage has raised the target to Rs 14,500 from Rs 13,600, which means an upside of over 37 per cent from the previous close.

"Strong beat driven by positive mix and lower cost pressures; increase EBIT estimated by 4–13 per cent over FY24–26E to reflect higher ASPs and margins, the global brokerage added in its note.

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