Maruti Suzuki Shares Rally to New High on Market Cap Boost
Maruti Suzuki India’s shares scaled an all-time high of Rs 13,000 on Monday’s trading session, propelled by anticipation of robust March quarter earnings results scheduled for release on Friday, April 26th. The company’s market capitalization surged to an impressive 4.09 lakh crore, a testament to the optimism surrounding its financial performance.
Analysts Project Strong Q4 Results
Analysts at Axis Securities predict a remarkable 54.9% YoY surge in profit to Rs 4,064 crore for the March quarter, alongside a 20.4% YoY increase in revenue to Rs 38,585 crore. This growth is attributed to a healthy 19% YoY expansion in the passenger vehicle segment and a favorable product mix, including increased sales of SUVs and exports.
SUV Sales and Price Hikes Fuel Growth
BNP Paribas anticipates a 21% YoY increase in sales, aided by a 13% YoY rise in volume and a higher proportion of UV sales. The brokerage projects an Ebitda margin of 12.4%, representing a 197 bps YoY improvement, which is attributed to better operating leverage, cost optimization, and a favorable sales mix.
Investors Keenly Watching Demand and Cost Trends
During the earnings call, investors will be eager to hear updates on the current waiting period for models, the size of the order book, especially for new launches, and the demand outlook for FY25. Insights into rural and urban demand trends, cost-control initiatives, industry discounting trends, and the commodity price outlook for FY25 will also be closely monitored.
Brokerage Targets Signal Further Growth
Motilal Oswal maintains a target of Rs 12,200 on Maruti Suzuki India shares, while InCred Equities has set a target of Rs 12,554. Analysts believe that the company’s sustained double-digit EBIT margin, coupled with volume growth recovery and the success of new launches, will drive further upgrades to the stock’s value.
