Maruti stock hits 52-week high on strong Q2 results. What brokerages say

The shares of Maruti Suzuki surged as much as 1.31% to hit a 52-week high at ₹9,768 on Monday after leading brokerage firms raised the company’s target price and gave a ‘buy’ call for the auto stock.  

The development comes days after the auto major on Friday reported a four-fold jump in net profit to ₹2,061.5 crore during the July to September quarter this year, as compared to ₹475.3 crore in the same period last year. The company’s standalone revenue from operations surged as much as 46% year-on-year (YoY) to ₹29,931 crore.  

On Monday, the brokerage firm Jefferies raised the target price for the Maruti stocks to ₹12,000 per share citing a positive outlook in the demand of the automobile maker. Moreover, for FY23-25, the analysts at the firm have raised earnings per stocks (EPS) by 3% to 8%. The brokerage firm has given a ‘buy’ call for the stock. Meanwhile, Goldman Sachs and HSBC have also maintained a ‘Buy’ call for the auto stock, by raising the target price to ₹12,500 and ₹11,000, respectively. 

Notably, Citi has also raised the target price for the auto stock at ₹12,500 per share, thus giving a buy call. The brokerage firm had earlier set the target price at ₹10,300 per share. Citing a positive volume outlook and strong order book, the brokerage firm has increased the volume estimates by 3% and EBITDA estimates by 6% for FY23-25. 

Similarly, brokerage firm JM Financial has raised the target price of the auto stock to ₹12,000, whereas Nirmal Bang has raised ₹11,412 apiece from its previous ₹11,000 thus maintaining a ‘Buy’ call for the auto stock.  

On the contrary, taking a ‘Neutral’ call, JP Morgan has raised the target price to ₹8,700 from ₹8,400 per share. The brokerage firm has increased the EPS estimates by 3% to 4% for FY23-25. Morgan Stanley has maintained an ‘Overweight’ call for the auto stock with a target price of ₹9,839. 

Moreover, the brokerage firms CLSA and Kotak Institutional Equities have a ‘Sell’ call for the auto stocks with the target price at ₹7,597 and ₹8,150, respectively.