Maruti Suzuki Q2 Review: Brokerages Positive Citing GST Cuts, Strong Exports — Check Target Price
Maruti Suzuki Q2: India's largest automaker reported a steady growth of profit and double-digit growth in revenue in the second quarter of the financial year 2025.
Shares of Maruti Suzuki India Ltd. are in focus in trade on Monday after brokerages issued largely bullish outlooks on the Swift-maker, with GST rate cuts and strong export execution boosting analyst sentiment.
India's largest automaker reported a steady growth of profit and double-digit growth in revenue in the second quarter of the financial year 2025.
Standalone net profit rose over 7% year-on-year to Rs 3,293 crore in the July-September quarter, according to a stock exchange filing on Friday.
Maruti Suzuki's operating profit, measured in earnings before interest, tax, depreciation and amortisation, came in flat at Rs 4,434 crore. Margin contracted from 11.9% in the same quarter last year to 10.5%.
Brokerages' View
Morgan Stanley continues to remain bullish on the automaker, retaining its 'overweight' call.
Suzuki is making bold moves by using India scale and competitiveness to drive exports, said the brokerage in its latest note. With 90% annual growth, Morgan Stanley predicts a strong quarter ahead for MSIL.
JPMorgan also has a similar outlook on the stock, setting its target price at Rs 17,500. The brokerage believes Maruti Suzuki's current growth rate could strengthen going ahead, supported by tailwinds from GST, income tax cuts and interest rate cuts.
CLSA, too, maintains an 'outperform' call on the automaker, with its target price for the counter set at Rs 17,743 going ahead.
The brokerage estimates a 3% growth in domestic PV volume, while expecting a 38% growth in exports, as compared to MSIL's 30% guidance. CLSA also offers a positive outlook on the company going ahead, citing GST rate cut tailwinds, new launches in the SUV segment, volume increase in CNG vehicles and strong execution in exports.
