Why are global brokerages bullish on Maruti Suzuki?

In September, five global brokerages—Citi, Jefferies, Morgan Stanley, Bernstein, and JP Morgan—raised their target price on the country's largest carmaker, Maruti Suzuki. The reason for the bullishness can be attributed to an increase in market share and strong management commentary.

According to Zee Business Research, Maruti Suzuki's market share has increased month-on-month since April 2023.

According to FADA, in April, the market share was 38.9 per cent which increased to 42.4 per cent in August.

Further, research suggests that the company's margins are expected to increase from 9 per cent to 11 per cent year-on-year (YoY) in Q2 FY24 due to a better SUV mix.

The company's management aims to achieve a 33 per cent SUV market share.

It also suggests that the company will outperform its competitors in the festive season with the booking of vehicles like the Fronx, Grand Vitara, Jimmy, and Invicto.

Lastly, the company's management has said that the annual production capacity will be doubled to 40 lakh units in eight years. Export volumes are expected to increase three times to 8,00,000 lakh units by FY31.

What do brokerages suggest for Maruti Suzuki? 

How has the company fared in the June quarter?

Maruti Suzuki India reported a standalone net profit of Rs 2,485.1 crore for the quarter ended June 2023, up 145.4 per cent as compared to the corresponding period a year ago.

Maruti Suzuki's revenue from operations came in at Rs 32,326.9 crore for the first quarter of the current financial year, as against Rs 26,499.8 crore for the year-ago quarter, according to a regulatory filing.

Maruti Suzuki share price: Historic performance

So far in 2023, shares of Maruti Suzuki have gained over 24 per cent against the Nifty's rise of over 8 per cent. 

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