Maruti Suzuki hits 52-week high as Bank of America raises Rs 1,000 target

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By Sonia Shenoy |Sonia Shenoy STI (Update)

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Maruti Suzuki stock price moved sharply on Thursday. Sentiment on the street turned bullish as global investment firm Bank of America Securities revised the Maruti Suzuki share price target to Rs 10,500 each from the previous Rs 9,500, suggesting a rise of more than 10.5% or Rs.1,500.

Shares of Maruti Suzuki hit a new 52-week high of 9,324.75 rupees on Thursday, jumping more than 4% in trading. Sentiment on the street turned bullish as global investment firm Bank of America Securities revised the Maruti Suzuki share price target to Rs 10,500 each from the previous Rs 9,500, suggesting a rise of more than 10.5% or Rs.1,000.

Analysts at the global brokerage firm believe that Maruti Suzuki is poised for a comeback with promising new launches. Not only that, there has been a good response to the re-launch of Brezza despite premium pricing, which is encouraging. The new Brezza also adds to the gap in the mid-to-high-end sport utility vehicle (SUV) space, BofA analysts said in a research note.

“We believe that Maruti’s new models can perform well, supported by good design / feature-rich models, strong brand awareness (beyond metro cities) and strong marketing mechanisms. Co can recoup 5 to 6% market share over the next 2 years (4 model launches), generating a volume CAGR of 14% over F22-25E,” the BofA report mentioned.

BofA expects Maruti Suzuki to post a compound annual volume growth rate (CAGR) of 14% over the FY22-25 estimate and has revised revenue by 6-8% and earnings per share (EPS) by 9 to 10%.

Booking trends at Maruti Suzuki appear strong ahead of the festive season, Maruti Suzuki India Executive Director Shashank Srivastava said. CNBC-TV18 in an interview on Wednesday.

“I expect the holiday season to be strong, provided of course that we are able to produce vehicles based on underlying demand.”

India’s largest automaker by market share is also among 12 stock picks by global brokerage firm Jefferies with a strong margin trend in FY23-24.

Jefferies expects Maruti’s EBITDA margin to increase from 6.5% in FY22 to 11.8% in FY24 (FY24 average 12.1%). 11-20).

Jefferies analysts believe that the margin recovery is driven first by improved pricing power amid strong demand and new launches, second by lower raw material prices and third by market advantage. operating leverage.

In early August, national brokerage firm Nirmal Bang included Maruti Suzuki among its top picks among passenger vehicle makers, citing a strong pipeline of new products amid an overall recovery in the photovoltaic segment.

Particularly on the new Grand Vitara, analysts Nirmal Bang said in a report that “early feedback on Maruti Suzuki’s new Grand Vitara SUV has been very promising, with around 70-80% of requests received for the hybrid variant due to higher fuel economy.

As of 11:56 a.m., Maruti Suzuki share price was trading at Rs 9,272.15, up 3.53% on BSE. The benchmark BSE Sensex lost 329 points to trade above the 60,000 level.



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