- HSBC raised Maruti Suzuki's target price to Rs 18,500 citing strong demand outlook
- Maruti Suzuki's market share has normalized at 40%, supporting profitability prospects
- GST rationalisation has lowered car prices, boosting demand for Maruti Suzuki vehicles
Shares of Maruti Suzuki will be in focus heading into Tuesday's trade after HSBC has issued a target price hike on the counter, citing strong demand outlook and market share returning to normalised levels.
With the Q3FY26 earnings season just around the corner, HSBC, in its latest report, has noted that the time to deliver profitability is now, as the company's market share has returned to a normal level of 40%.
Maruti Suzuki is also set to be aided by an overall demand outlook that remains buoyant, especially after the GST rationalisation exercise that helped push car prices lower.
HSBC, therefore, believes the stars are aligned for Maruti Suzuki and keeping that in mind, the company's Q3 and Q4 margins could prove to be critical.
Maruti Suzuki To Soon Decide On Revising Small Car PricesThe brokerage firm believes anything below the 10% EBIT margin could disappoint markets.
HSBC believes volatility in commodity prices could also be a near-term risk for Maruti Suzuki, especially with copper prices blowing up in the last one year.
Nevertheless, HSBC remains bullish on Maruti Suzuki, as they have maintained a 'buy' call on the counter, while hiking the target price from Rs 17,000 to Rs 18,500.
The brokerage firm's latest target price implies an upside of 7.7%.
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