maruti suzuki stock price: should you buy, sell or hold maruti suzuki after first quarter results?

New Delhi: Brokerage firms are still mixed in the country’s largest automaker after the June quarter earnings announcement.

Maruti Suzuki announced a 129.76 per cent YoY rise in net profit to Rs 1012.80 crore in the June quarter compared to Rs 440.80 crore in the same quarter last year.

Sales volume for the quarter was 4,67,931 units compared to 3,53,614 units in the same quarter last year. However, the core quarter was affected by Covid-related lockdowns and disruptions, therefore, the year-over-year comparison is not comparable.

Ebit margin for the quarter improved to 5 percent, an improvement of 450 basis points above 0.5 percent in the year-ago quarter. The company said that the rise in commodity prices negatively affected its operating profits.

Global brokerage BofA Securities maintains “Buy” rating

With a target price of Rs 9,500 as it believes demand and feedback for the new model are positive.

However, margins were lost on the weak yen but it wasn’t that bad. The new Breza’s response is solid and cool

Pricing is still pending.

However, CLSA had a ‘sell’ mark on the stock with a target price of Rs 7,374 due to Maruti’s exorbitant valuation.

CLSA said the material cost tailwind has yet to kick in, while airbag regulation is a threat. It added, “EBITDA was well below estimates. The market is watching with interest the Grand Vitara bookings.”

Mitul Shah, Head of Research,

Securities expects the domestic PV industry to register double-digit growth in FY23 and FY24, which will support Maruti’s business. Moreover, sales of premium products will increase.

In view of the healthy PV sales expected over the next two years due to lower penetration and increased affordability, strong product portfolio across all markets, strong return ratio and healthy balance sheet, we maintain a buy rating and target price of Rs 9,700 in Maruti, Shah.

Maruti’s performance for the first quarter was impacted by negative commodity costs, lower other income and higher sales promotion expenditures for new product launches, said Mansi Lal, Prabodas Liladr Research Analyst.

“Market share gains remain key for Maruti due to the competitive intensity of the UV field. We expect the demand momentum at the entry level ahead of the festive season,” she added.

(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own. These do not represent the views of the Economic Times)


(Visited 3 times, 1 visits today)

Related posts

Leave a Comment