Some analysts up targets on Maruti post strong Q4

Mumbai: Some brokerages have raised the target price on Maruti Suzuki India after it reported strong operational earnings for the March quarter.

The stock ended down 1.2% at ₹7,641.55 on Monday despite the target price upgrades.

On the rating front, brokerages that maintained a buy said the order backlog is strong and that the automaker is on a gradual recovery to profitability.

UBS has maintained a buy rating and raised the target price to ₹10,000 from ₹9,840 while ICICI Securities has raised the target price to ₹8,906 from ₹8,745.

Axis Securities has also maintained a buy but its target price is unchanged at ₹9,800. Sharekhan also kept its target price unchanged at ₹9,820 while retaining a buy recommendation. HSBC has retained a buy with an unchanged target price of ₹9,500.

Brokerages, which retained bearish ratings, cited concerns about the company losing market share in the urban market and persistent margin pressures.

Kotak Institutional Equities continued with its sell stance post the quarterly result on the expectation of persistent margin pressures and lack of focus in the battery electric vehicle segment. The firm has revised the target price to ₹7,150 from ₹7,000 after increasing FY23-FY24 operating profit (Ebitda) estimates by 1-2%.

Centrum Broking has maintained a reduce rating while revising the target price to ₹8,096 from ₹7,187. The brokerage said current order book and sustained booking trends are expected to drive growth in the near term.

CLSA raised its target price on the stock to ₹6,533 from ₹6,430 but retained a sell rating.