Stock Market Today: Maruti Suzuki India Ltd share price gained up to 4% during intraday traded on Wednesday.
Maruti Suzuki share price that opened at ₹11856.00 on the BSE on Wednesday, slightly higher than the previous close of ₹11742.50. The Maruti Suzuki share price gained further to highs of ₹12194.50, marking gains of almost 4%
Maruti Suzuki remains the Top Pick of IIFL for 2025 who expects further upside of 15% for the stock with target price at ₹13,800.
2. Pickup in small cars, if any, would help Maruti
Maruti has 65% mkt-share in non-SUVs and only 25% share in SUVs, highlighted IIFl Capital. Although Maruti has held on to its market share in each segment (SUV as well as non-SUV), it has lost on an overall basis due to industry shift to SUVs. The small car segment (priced at sub-Rs11 Lakhs) is at 75% of FY19 levels while higher priced SUVs have growth to 2.6 times FY19 levels. If entry-level first-time carbuyers return to the market, Maruti will start regaining share, said IIFL Capital
3. Risk-reward favourable after a year of sharp underperformance:
After a sharp correction in the stock price during the past 3-4 months and big under-performance in 2024 (gains of 5% compared to Nifty Auto index rise of 23%), the risk-reward is quite favourable for Maruti now. The stock is trading at 23 times FY26 Earnings Per Share, a discount to its own history and 10% cheaper than the Auto OEM basket in India, as per IIFL Capital
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
Here are 3 key reasons why IIFL expects more than 15% upside for the stock that remains its top pick for 2025
