Maruti Suzuki Q1 Review — Motilal Oswal Maintains 'Buy' On Multiple Launch Tailwinds
Any favorable policy for hybrids by the government may drive a re-rating, as Maruti Suzuki would be the key beneficiary of the same, says Motilal Oswal
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For FY26, the brokerage see multiple launch tailwinds for Martuti Suzuki, such as the eVitara, one new SUV and hybrid variants. Further, Maruti Suzuki anticipates that exports will sustain the growth momentum and grow by at least 20% in FY26.
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Motilal Oswal Report
For FY26, we see multiple launch tailwinds for Maruti Suzuki India Ltd., such as the e-Vitara, one new SUV and hybrid variants. Further, the company anticipates exports to sustain the growth momentum and grow by at least 20% in FY26. Maruti Suzuki expects to deliver 70,000 units of e-Vitara in FY26, the bulk of which would be in export markets.
Further, any favorable policy for hybrids by the government may drive a re-rating, as Maruti Suzuki would be the key beneficiary of the same. However, we factor in 50bp margin pressure for Maruti Suzuki in FY26E given the anticipated rise in input costs.
Overall, we expect Maruti Suzuki to deliver a 10% earnings CAGR over FY25-27E, driven by new launches and strong export growth.
At 25.9 times FY26E/23.4x FY27E EPS, Maruti Suzuki’s valuations appear attractive. Reiterate Buy with a target price of Rs 14,476, valued at 26 times Jun’27E EPS.
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