HSBC reiterates 'buy' on Maruti Suzuki; sees EV exports traction as key stock driver

Foreign brokerage HSBC has reiterated its 'buy' rating on the leading passenger vehicle major- Maruti Suzuki with the target price pegged at Rs 14,000. The set target implies an upside potential of over 10 per cent from the previous close of Rs 12,668.25 per share on the BSE.

As per the brokerage, India will emerge as the export hub for electric vehicles (EVs) or Suzuki as well as Toyota. Further, it added that the country's largest automobile company- Maruti Suzuki offers potential of a strong volume upside.

HSBC pointed out that it has analysed the export markets of Suzuki together with EV penetration. And it sees its 5000-6000 units per month sales estimate as plausible.

The global brokerage said that the percentage margins could be lower but not absolute for exported EVs. Moreover, the brokerage added that EV exports traction will be key driver for the stock. 

Shares of Maruti Suzuki last traded steady with a negative bias in a weak market at Rs 12,663.55 apiece on the BSE.

Maruti Suzuki's Q3FY25 earnings

Maruti Suzuki in the December quarter posted 13 per cent on-year rise in its standalone net profit at Rs 3,525 crore. Also, the revenue increased 16 per cent year-on-year to Rs 33,309 crore in the review quarter.

Also, on the operational front, the EBITDA came in at Rs 4,470 crore, gaining 14 per cent year-on-year.

Maruti Suzuki share price performance

The stock of Maruti Suzuki in the last one year has gained over 15 per cent, while in the last 3 years it has gained 52 per cent.