Maruti Suzuki Share Price jumps up to 2 percent, buy, sell or hold, know what is the analysis of big investors
Maruti Suzuki India Limited’s shares experienced a notable increase, closing nearly 2% higher after the company reported a significant rise in net profit for the June quarter. This surge in share price has prompted discussions among investors regarding whether to buy, sell, or hold the stock.
Main Points
- 1 Recent Performance and Current Price
- 2 Reasons for the Maruti Suzuki Share Price Jump
- 3 Strong Earnings Report
- 4 Increased Vehicle Sales
- 5 Maruti Suzuki Share Price Market Sentiment
- 6 Analyst Recommendations: Buy, Sell or Hold?
- 7 Maruti Suzuki Share Price Expected Target
- 8 Maruti Suzuki Share Price Factors Affecting Future Performance
- 9 Market Competition
- 10 Economic Conditions
- 11 Global Supply Chain Issues
Recent Performance and Current Price
As of the latest trading session, Maruti Suzuki shares were priced at approximately ₹11,258.45, reflecting a 1.92% increase from the previous day. The stock has seen fluctuations, with a day low of ₹10,945 and a high of ₹11,393.8 during the trading session. The company’s market capitalization stands at around ₹3.54 trillion, highlighting its substantial position in the Indian automotive sector.
Strong Earnings Report
The primary catalyst for the recent price increase was Maruti Suzuki’s impressive earnings report. The company announced a 47% jump in net profit, reaching ₹3,650 crore for the June quarter. This growth was attributed to effective cost management, favorable commodity prices, and foreign exchange gains. Additionally, net sales rose to ₹33,875 crore from ₹30,845 crore year-on-year.
Increased Vehicle Sales
Maruti Suzuki reported selling 521,868 vehicles in the first quarter of FY25, marking a 5% increase compared to the same period last year. This includes a notable uptick in domestic sales, which rose by 4%. Such performance indicates robust demand for Maruti’s vehicles despite competitive pressures in the market.
Investor sentiment has been largely positive due to Maruti’s strategic investments in technology and innovation. Recently, the company invested over ₹1.99 crore in Amlgo Labs Pvt Ltd., focusing on data analytics and AI solutions. Analysts believe these moves position Maruti well for future growth.
Analyst Recommendations: Buy, Sell or Hold?
Analysts have varied opinions on Maruti Suzuki’s stock:
- Buy: Some analysts recommend buying shares due to strong fundamentals and growth potential. They predict target prices between ₹13,400 and ₹14,000, suggesting further upside potential as market conditions improve.
- Hold: A cautious approach is advised by others who suggest holding onto shares until clearer trends emerge in vehicle demand and competitive dynamics. They highlight that while current performance is strong, external factors like economic conditions could impact future growth.
- Sell: A few analysts caution against aggressive buying at this stage due to potential volatility and declining margins expected in upcoming quarters. They suggest monitoring inventory levels and sales trends closely before making further investments.
Based on current market analysis and performance indicators, several brokerages have set target prices for Maruti Suzuki shares:
| Brokerage | Target Price (₹) | Recommendation |
|---|---|---|
| Prabhudas Lilladher | 13,400 – 14,000 | Buy |
| Motilal Oswal | 12,500 | Hold |
| Nuvama | 12,800 | Hold |
These target prices reflect varying expectations based on market conditions and company performance metrics.
Market Competition
Maruti Suzuki faces increasing competition from both domestic and international players. The automotive sector is witnessing heightened rivalry as companies ramp up production and offer discounts to attract customers. This pressure could impact profit margins moving forward.
Economic Conditions
Economic factors such as inflation rates and consumer spending will significantly influence vehicle sales. Analysts are keeping a close eye on rural demand as it plays a crucial role in Maruti’s overall sales performance.
Global Supply Chain Issues
Continued disruptions in global supply chains may affect production schedules and inventory levels. Maruti has been adjusting its dispatches to align with market demand but must navigate these challenges effectively to maintain growth momentum.
