Should you buy, sell or hold Maruti Suzuki shares post Q4 results? Brokerages remain upbeat

Maruti Suzuki share price today: Maruti Suzuki shares on Monday, April 29 India remained on focus after the country's largest carmaker reported its Q4 earnings report. At close, Maruti Suzuki shares gave up initial gains to settle flat, 0.04 per cent lower at Rs 12,698.05 on NSE. 

Maruti Suzuki Q4 result

The carmaker posted a standalone net profit of Rs 3,877.8 crore for the January-March period,  driven by factors such as strong sales volume, favourable commodity prices, cost reduction efforts but missing analysts' expectations. The quarterly net profit was up 47.8 per cent compared with the corresponding quarter a year ago. 

The auto giant, whose popular passenger cars include Wagon R, Dzire, Swift, Baleno and Brezza, registered revenue of Rs 38,234.9 crore for the March quarter, up 19.3 per cent on a year-on-year basis. 

Its margin, a key measure of profitability, improved to 12.2 per cent from 10.5 per cent a year ago. 

According to Zee Business research, Maruti Suzuki India's fourth-quarter net profit was estimated at Rs 3,950 crore, revenue at Rs 38,700 crore, and margin 13 per cent. Read more on Maruti Suzuki Q4 results 

Maruti Suzuki Q4 result review: Here's what Anil Singhvi says

Zee Business Managing Editor Anil Singhvi expected Maruti Suzuki futures to find support at Rs 12,750 and Rs 12,690, and higher levels at Rs 12,930 and Rs 13,020. Pointing out that the auto giant's Q4 topline was strong, though its profit and EBITDA fell short of estimates, the market wizard expected the stock to take a minor hit. 

Maruti Suzuki share price target: Should you buy, sell or hold shares?

Jefferies has maintained a buy call on Maruti Suzuki India. The brokerage has raised the target on the auto stock to 14,750 from 12,000. The revised target implies an upside potential of 16.1 per cent from the previous close. Jefferies noted the following key points in its note: 

• Good growth but EBITDA miss
• PV growth rate moderating; market share stabilizing
• Hybrid tax cut can provide upside
• Raise FY25-26E EPS by 3-4 per cent 

Citi, HSBC too have continued with a buy call on Maruti Suzuki. Citi has raised the target to Rs 15,100 from Rs 14,200, an upside of 18.8 per cent from previous close while HSBC has placed the target 14,000. 

Morgan Stanley has maintained an overweight call. The brokerage has raised the target to Rs 14,505 from Rs 14,322 on the stock. 

In addition, Nomura, JPMorgan and Goldman Sachs each have retained a neutral rating on the counter.  

Nomura has raised the target to Rs 12,522 from Rs 11,649, JPMorgan has increased the target by Rs 1,350 to Rs 12,200 while, on the flip side, Goldman Sachs has cut the target to Rs 12,000 from Rs 12,100. 

Maruti Suzuki dividend

Maruti Suzuki India has announced a record dividend of Rs 125 per share. Read more on the Maruti Suzuki dividend

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