Buy Maruti Suzuki; target of Rs 15,350: Anand Rathi

What happened

Anand Rathi maintained a BUY rating on Maruti Suzuki and lowered its target price to Rs 15,350. The broker noted standalone EBITDA, which means earnings before interest, tax, depreciation and amortisation, declined 6% year on year to Rs47.6bn in Q2FY27.

Confirmed

Global impact / market context

A lower target price still implies upside, but the broker sees near-term profit pressure from weaker EBITDA. Expected volume growth, GST cuts and new launches are the main supports for future revenue and profit per sale.

Analyst inference

The broker says the stock trades close to one standard deviation below its usual valuation, meaning it looks cheaper than normal relative to expected profit. That supports keeping a BUY rating despite the lower target.

Analyst inference

What to watch

1. The broker expects volume to grow 10% a year, helped by healthy domestic demand from 500,000 units of new capacity, GST cuts and first-time buyers. Confirmed
2. Anand Rathi proposes a target price of Rs 15,350 based on a sum-of-the-parts valuation, which values the core business and adds cash per share. Proposed
3. Watch whether price hikes and higher sales volume lift EBITDA margin in the second half of the year and beyond, and whether compact-segment demand keeps raising market share. Analyst inference

Evidence

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