LKP Research has given Buy recommendation for Maruti Suzuki with a target price of Rs. 8803 in its research report issued on Apr 30, 2022
LKP Research’s research report on Maruti Suzuki
MSIL reported a better margin performance in the quarter on lower input costs and discounts. The demand is going quite strong driven by personal mobility theme, first time buyers, new variant launches and CNG variants. Going forward, with supply issues getting resolved sooner or later, we believe that the strong order book, newer launches, digitization of sales, expanding dealer network, higher capacity utilization rates and price hikes should trigger a superior volume and margin profile in the ensuing years. An aggressive EV+ Hybrid plan of the management led by Rs104 bn capex at Gujarat towards these models entails a big bang entry of MSIL in 2025 in the EV+ Hybrid domain.
With ability to combat competition coming from EV shift and opening up of rural markets which were severely impacted by Covid Wave #2, company is poised for a healthy growth here-on. Despite the short to mid-term issues, we remain sanguine on the stock with a target of Rs8,803