Shares of Maruti Suzuki India Ltd (MSIL) saw a decline in Wednesday's trade following the announcement of the country's largest carmaker's second-quarter earnings. The stock was last recorded trading 1.11 percent lower at Rs 11,327.70, marking a 32.23 percent fall so far in calendar year 2026.
Brokerages Weigh In on Maruti Suzuki's Outlook
Several brokerages reassessed their positions on MSIL after the Q2 results, presenting a mixed but cautious outlook.
Jefferies Adjusts Estimates
Jefferies, a global brokerage, cut its earnings per share (EPS) estimates for FY27-29 by 7-11 percent and reduced its price target to Rs 13,500 from an earlier Rs 16,500. Despite these adjustments, Jefferies maintained its 'Buy' rating on the stock. The firm noted that while Q2 EBITDA was broadly in line with expectations, the margin outlook remains uncertain, even as MSIL's market share shows signs of stabilization.
Nomura Flags Demand Risks for Hatchbacks
Nomura kept its 'Neutral' rating on MSIL, lowering its target price to Rs 13,046 from Rs 14,071. The brokerage specifically highlighted demand-related risks for FY28, particularly impacting hatchbacks. Nomura's analysis points to higher interest rates, inflation, weak monsoons, and oil prices as factors that could dampen demand for small cars and vans, which constitute approximately 58 percent of MSIL's total volumes. However, Nomura also acknowledged encouraging bookings for the new Brezza, with 35 percent each for the 1.0L turbo petrol and underbody CNG variants.
MOFSL and JM Financial Maintain 'Buy' Ratings
Motilal Oswal Financial Services (MOFSL) noted that MSIL's Q2 profit after tax (PAT) fell below its estimates, primarily due to mark-to-market (MTM) losses affecting other income. Despite this, MOFSL projects an 11 percent earnings compound annual growth rate (CAGR) for MSIL over FY26-28 and reiterated a 'Buy' rating with a target price of Rs 14,800.
Similarly, JM Financial retained its 'Buy' rating, though it trimmed its target price slightly to Rs 14,170 from Rs 14,610.
Choice Institutional Equities Upgrades Rating
Choice Institutional Equities upgraded its rating on MSIL from 'ADD' to 'BUY', setting a target price of Rs 13,500. The brokerage cited several positive factors, including the recent correction in share price, domestic market-share gains, the introduction of refreshed models, ongoing capacity expansion, and an improving demand trend for small cars. Choice highlighted the refreshed Baleno's Level 2 ADAS features and MSIL's significant contribution to India's passenger vehicle exports, accounting for over 51 percent in H1 FY27, despite logistical challenges. The brokerage also mentioned the Fronx model surpassing 2,00,000 cumulative exports in under 38 months.