Brokerages Are Mixed on Maruti After Q1 Numbers

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Brokerages Are Mixed on Maruti After Q1 Numbers

By Aditya Raghunath

Investing.com -- Maruti Suzuki India Ltd. (NS: MRTI ), India’s largest car maker, reported its numbers for Q1 FY22. Net profit came in at Rs 440.8 crore for the June 2021 quarter compared to a loss of Rs 249.5 crore in the June 2020 quarter.

The stock closed at Rs 6,999 on July 29. Brokerages are mixed over the company’s future.

Kotak Institutional Securities has a sell rating on the stock with a price target of Rs 6,000. It said, “Q1 EBITDA was 5% below our expectations due to higher input costs and employee expenses. However, the volume growth outlook remains strong given a strong order backlog.”

Brokerages Antique and Investec also have ‘sell’ ratings on the stock with targets of Rs 5,600 and Rs 5,040 respectively.

Bernstein has an overweight rating on the stock with a target price of Rs 7,850. It said that the second pandemic wave disrupted operating leverage, and a wage revision in a weak quarter further impacted the company but management commentary indicates a recovery in overall demand.

HDFC (NS: HDFC ) Securities and Motilal Oswal Financial Services Ltd (NS: MOFS ) also have ‘buy’ calls on the stock. HDFC Securities has revised its target price downwards from Rs 8,680 before the results to Rs 8,190. Motilal Oswal has a target price of Rs 8,200 for Maruti Suzuki.

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  • VINAYAK SHIRKE @VINAYAK SHIRKE
    Buy call is best but after 7500 break out
    Like 0

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