Maruti Suzuki Share Price Updates: Maruti stock hits 52-high on clocking 48% profit surge in Q1

In July 2024, Maruti Suzuki India Limited sold a total of 175,041 units. Total sales include domestic sales of 140,354 units, sales to other OEM of 10,702 units and exports of 23,985 units. 

Maruti stock closed 1.73% higher on the NSE at ₹13,343.05. 

On the BSE, the stock closed at ₹13,300.70, up 1.01%.

Shares of Maruti rose 1.89% on the NSE, trading at ₹13,363.25 as at 3.11 pm.

Maruti Suzuki stock rises 1.11% on the NSE, trading at ₹13,261.80 as at 1.05 pm.

We remain upbeat on MSIL’s operating performance. With better margins in Q1 we have increased FY25E/FY26E earning by 4.2%/4.9% and r etain BUY rating with a revised TP of Rs16,295 (implying 27.8x FY26E EPS). Risks: renewed competition in SUV.

MSIL’s Q1FY25 standalone revenue grew by 9.9% YoY driven by strong volume growth. Gross profit grew by 20.5% YoY, while margin expanded by 262bps YoY to 29.8%, benefitting from better operating leverage, product mix and favorable commodity prices. EBITDA grew by 50.9% YoY, while margin expanded significantly by 344bps YoY to 12.7%. Strong overall performance led APAT to expand by 46.9% YoY. As the sluggishness in entry-level/small car segment continues, the management anticipates the contribution of UVs in industry and in its portfolio to continue to increase. As it is increasing its capacity and strategically planning its portfolio in hybrids and CNG categories, we expect MSIL volume to grow at a CAGR of 7.5% over FY24-26E.

We continue to remain bullish on MSIL given 1) consistent mix improvement in its UV portfolio in domestic and international markets, 2) capacity expansion with multi-powertrain options, 3) premiumization trend coupled with rising disposable income and improved supply chain, and 4) revival in spending, which could further aid in volume expansion. Factoring this, we slightly change our revenue/EBITDA/PAT estimates by 2-4% over the forecast period. We retain our ‘Buy’ rating with a target price of Rs15,145 (previous Rs14,432) valuing the company at 26x on its FY26E EPS.

Maruti Suzuki stock trades flat at ₹13,205 on the NSE as at 11.41 am. 

On the BSE, the stock trades at ₹13,169.

Q1FY25 revenue/ EBITDA grew 10%/39% YoY to INR355.3bn/INR45bn, above estimates driven by higher realisation/other operating income and commodity deflation. Factoring in better gross margin, we are increasing FY25E and FY26E EBITDA by 4% each. We forecast a revenue CAGR of 13% over FY24–27E led by moderate growth in cars and robust growth in SUVs. Furthermore, better net pricing and scale shall boost profitability, driving an EBITDA CAGR of 15%. The launch of E-SUV (eVX model) and gradual recovery in hatchbacks demand should catalyse volumes, and support market share at 43% over FY25–27E. We retain ‘BUY’ with an unchanged TP of INR16,000 based on 30x Sep-26E core EPS plus cash of INR2,421/share

MSIL’s 1QFY25 operating performance was ahead of estimates as it was able to post margin improvement QoQ despite lower volumes and higher discounts. Margin improvement was driven by lower input cost, favorable currency benefit and higher other operating income. We have marginally tweaked our estimates. We expect MSIL to continue to outperform industry growth over FY25-26E.

Reiterate BUY with a TP of INR15,160 (premised on 26x Jun’26E EPS).

MSIL’s 1QFY25 EBITDA margin came in at 12.7%, 150bps above JMFe. Sequential improvement (40bps) was owing to better mix and cost control initiatives. MSIL, with backto-back SUV launches has strengthened its presence in the B-segment (regained leadership position with c.28% mkt. share). The company plans multiple new launches (10+) over next 6-7 years (incl. 6 new EVs and Hybrid models). Near-term demand momentum is expected to be driven by CNG / UV portfolio. Benefit of richer portfolio mix and higher operating leverage is expected to support margins going ahead. We estimate revenue / EPS CAGR of 13% / 16% over FY24-27E. We ascribe 25x PE to arrive at Jun’25 fair value of INR 15,000. Maintain BUY. Pick-up in Strong Hybrid demand remains a key catalyst for re-rating. Revival in entrylevel segment remains a key monitorable. 

Ex-Dividend 02 Aug 2024 (Tomorrow)

Last date for Cum-Dividend Today

Maruti Suzuki India Ltd.

Dividend Per Share Rs.125

Previous day Closing Price – Rs. 13167.95

Shares of Maruti Suzuki India traded at ₹13,551.45 on the NSE, higher by 3.32% as at 10 am.

Automobile companies including Maruti Suzuki, Tata Motors, Eicher Motors, Escorts, M&M, Ashok Leyland, TVS Motor, Bajaj Auto and Hero MotoCorp will remain in focus, as most of them will declare their sales figures for July. Analysts expect a mixed set of numbers from these players. However, two and three-wheelers are expected to report better sales figures, they said.

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MSIL reported a consolidated net profit of ₹3,759 crore for the first quarter (Q1) ended June 30, a year-on-year (YoY) growth of 48 per cent as compared to ₹2,542 crore in the corresponding period last year.

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Maruti stock traded at ₹13,526.45, higher by 3.13% as at 9.32 am.