Maruti Suzuki Shares In Focus: Brokerages Remain Positive Despite Q4 Profit Drop — Should You Buy?

Shares of Maruti Suzuki India Ltd are in focus today, April 29 after the company reported a jump in revenue but a decline in profit for the fourth quarter. The consolidated revenue jumped 28.2% year-on-year to Rs 52,449 crore, compared with Rs 40,901 crore in the same quarter last year, aided by strong vehicle sales. Net profit dipped 6.9% to Rs 3,591 crore from Rs 3,857 crore a year earlier.

The drop was primarily driven by a sharp drop in other income and higher tax expenses.  Other income stood at Rs 500 crore, significantly lower than Rs 1,528 crore in the year-ago period, while tax expense rose to Rs 1,246 crore from Rs 1,005 crore. The company announced a final dividend of Rs 140 per share, at a total payout of Rs 4,402 crore, subject to shareholder approval.

Brokerages cited exports as a significant key driver of FY26 outperformance, while flagging rising cost pressures, which could impact margins over the near to medium term. 

Morgan Stanley maintained an 'Overweight' rating on the stock with a target price to Rs 17,895, citing The revised target is higher than 52 week high of Rs 17, 370, since then the stock has corrected around 22.8%. Citing inline operations, Investec reiterated 'Buy' coverage, while cutting the target price to Rs 15,360 from the previous target price of Rs 15,465. Notably, the current target price marks nearly 20% upside from the current price of Rs 12,892. Citi has also maintained 'Buy' rating, and hiked the target price to Rs 18,500 from its previous target price of Rs 18,200. The brokerage flagged  high cost pressures, which is likely to have a medium term impact.

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Morgan Stanley on Maruti 

• The brokerage maintained 'Overweight' with target price of Rs 17895.
• Strong FY27 volume target,  margins to trough in Q1.
• Management guided for around 10% domestic volume growth in FY27,  200 basis points ahead of estimate.
• Exports were a key driver of FY26 outperformance.

Investec on Maruti

• Investec maintained 'Buy', cut target price to Rs 15,360 from Rs 15,465.
• The automaker is operationally in line; equipped to navigate the haze.
• Lower EPS estimates for FY27-28E by 1-3% amid margin pressure.
• The brokerage expects Victoris to do the heavy lifting to drive growth at home supported by e-Vitara in exports.
• It further expects sMaruti to deliver 17%/13% EBIT/PAT CAGR over FY26-28.

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Citi on Maruti

• The brokerage maintain 'Buy'; hike target price to Rs 18,500 from Rs 18,200.
• Management noted that demand moment continues to be strong post the GST cuts.
• Cost pressures are rising and could impact margins over the near to medium term.
• Increase volume estimates slightly, but earnings are trimmed given higher cost pressures.
   

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