The brokerage expects Maruti Suzuki to partially gain back market share on the back of its aggressive new model launch plan, benefit from a partial rebound of the small car market when it happens (we are optimistic of it partially rebounding from FY27), and benefit from any shift in powertrain trend to hybrids (like it is happening globally).
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HDFC Securities Institutional Equities
Maruti Suzuki India Ltd. has lost market share over the last five-six years as it was late to capitalize on the SUV trend, which was further exacerbated by the company exiting the diesel segment. However, a change in strategy for the company is leading to structural tailwinds.
We expect the company to partially gain back market share on the back of its aggressive new model launch plan, benefit from a partial rebound of the small car market when it happens (we are optimistic of it partially rebounding from FY27), and benefit from any shift in powertrain trend to hybrids (like it is happening globally).
Additionally, we expect exports to increase meaningfully as the company becomes the global electric vehicle production hub for the parent. We value the company at 24x FY27 EPS for a target price of Rs 14,839 and maintain a Buy rating.
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