Citi's Top Auto Pick Bags A Target Price Hike On Strong Volume Growth

Citi has given Maruti Suzuki India a target price boost of Rs 800 as it accommodates the latest volumes data for various models.

The brokerage also tweaked their margin assumptions, citing the expectations of better mix and lower discounts for the company. Citi's EBIT estimates over financial year 2025-27 was hiked by 3%-5%.

The earnings estimates given to Maruti also see an uptick of 5%-7%. The brokerage also marginally increased its target EV earnings before interest and taxes multiple to 24 times. This compared to the 23 times earlier as the brokerage now sees a better volume outlook.

With the target price seeing a hike of Rs 800, it now stands at Rs 14,500. Earlier it stood at Rs 13,700. Citi maintains Maruti as its top pick in the Indian auto sector.

The closing price of the share was Rs 12,762.9 while the stock rose as much as 0.74% to Rs 12,774 during trade on Monday.

It has risen 17.54% in the last 12 months. The relative strength index was at 66.16.

About 53% of analysts have changed the target price on the stock over the last month. There were 24 price hikes, five downgrades and six analysts who dropped the stock, according to Bloomberg data.

Thirty nine out of the 47 analysts tracking the company have a 'buy' rating on the stock, five recommend a 'hold' and three suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 13,930, implying an upside of 9.1%.