Maruti Suzuki’s Q2 Earnings Surpass Expectations, HDFC Securities Raises Target Price

  • Investing.com
  • Stock Market News
Maruti Suzuki’s Q2 Earnings Surpass Expectations, HDFC Securities Raises Target Price
Credit: © Reuters.

Maruti Suzuki (NS: MRTI ), the leading automaker in India, has reported robust Q2FY24 earnings with a profit after tax (PAT) of INR 37.2bn ($495 million), outperforming the forecast by HDFC Securities. The better-than-expected performance was attributed to unexpectedly high margins, with no special factors involved.

The company's aggressive product launches have significantly contributed to its success, pushing its utility vehicle (UV) market share to 25.8% in the first half of FY24. This feat has further cemented Maruti Suzuki's leadership in the Indian automobile sector.

Efficient supply chain management has also played a crucial role in Maruti's growth, leading to a decrease in order backlog to 250k units. The success of the GV model, selling between 9-10k units per month, underscores Maruti’s strong foothold in the >INR1,500k segment.

In light of these developments, HDFC Securities has revised its FY24-25 earnings estimates for the automaker upward by 10% and 7% respectively. The brokerage firm also raised its target price for Maruti Suzuki to INR 12,052 per share from an earlier undisclosed price whilst maintaining a "BUY" status on the stock.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100

Related Articles