ICICI Direct has given Hold recommendation for Maruti Suzuki with a target price of Rs. 8760 in its research report issued on Jan 26, 2022

ICICI Direct’s research report on Maruti Suzuki

Maruti Suzuki (MSIL) is the market leader in the domestic passenger vehicle (PV) space with market share pegged at ~48% and popular models being Alto, WagonR, Swift, Brezza, Baleno, Ertiga, etc, among others. Market leader in each sub-segment – cars (62.2%), UV (21.6%), vans (96.6%) • Strong b/s; ~Rs 44,000 crore cash and investment on books as of FY21.

Outlook

We upgrade MSIL from SELL to HOLD amid robust order-book, improving chip availability, healthy demand prospects & new product launch pipeline. Introducing FY24E, we roll over our valuations and now value MSIL at Rs 8,760 i.e., 30x P/E on FY24E EPS (previous target Rs 6,000).

More Info on Trent

At 17:30 Maruti Suzuki India was quoting at Rs 8,553.20, down Rs 264.05, or 2.99 percent.

It has touched an intraday high of Rs 8,915.15 and an intraday low of Rs 8,522.75.

It was trading with volumes of 25,535 shares, compared to its thirty day average of 25,149 shares, an increase of 1.53 percent.

In the previous trading session, the share closed up 2.52 percent or Rs 216.65 at Rs 8,817.25.

The share touched its 52-week high Rs 8,966.80 and 52-week low Rs 6,301.20 on 27 January, 2022 and 24 February, 2021, respectively.

Currently, it is trading 4.61 percent below its 52-week high and 35.74 percent above its 52-week low.

Market capitalisation stands at Rs 258,375.12 crore.

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