Maruti Suzuki Rises Nearly 4% On Healthy Outlook; What Investors’ Should Know – News18
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Shares of Maruti Suzuki India (MSIL) rose 4% at Rs 12,194.50 during Wednesday’s intra-day trading on the BSE, driven by a positive outlook
Maruti Shares
Shares of Maruti Suzuki India (MSIL) rose 4% at Rs 12,194.50 during Wednesday’s intra-day trading on the BSE, driven by a positive outlook. This marks the stock’s highest level since October 22, 2024, and comes close to its 52-week high of Rs 13,675, reached on August 1, 2024.
So far in January 2025, MSIL has outperformed the broader market with a 12% surge, following strong December 2024 sales figures. The company reported a 29.6% year-on-year (YoY) growth, reaching 1.78 lakh units, with exports growing 39.2% YoY to 37,419 units. In comparison, the BSE Sensex has fallen nearly 2% this month.
Analysts remain optimistic about MSIL’s long-term growth prospects, citing strong demand for SUVs (which make up about 45% of domestic sales), increasing adoption of compressed natural gas (CNG) vehicles (about 35% of total volumes), rising export volumes, and the anticipated launch of electric vehicles (EVs) by the end of FY25.
While Emkay Global Financial Services expresses caution about the overall passenger vehicle (PV) market due to weak fundamentals and growing competition in the EV space, they remain relatively more favorable toward MSIL. The brokerage firm highlights the company’s growth potential in small cars, a better-than-expected product launch pipeline (including a 7-seater SUV in H2CY25), and an undemanding valuation (below long-term averages).
MSIL’s ongoing strategy of consistent new launches, export expansion (including a milestone of 3 million cumulative exports), and efforts to normalize inventory levels are expected to drive continued growth and solid sales performance. Additionally, higher year-end discounts and the anticipation of a price hike in January 2025 contributed to the company’s record retail sales of 2.52 lakh units, according to the brokerage firm’s update.
On January 17, 2025, MSIL’s e Vitara electric SUV will be showcased at the Bharat Mobility Global Expo 2025. Initially unveiled in Milan, Italy, in 2024, the e Vitara is Maruti’s first electric-only vehicle and is set for an Indian launch in March 2025. It will compete with other electric SUVs like the Mahindra BE 6, Tata Curvv EV, MG Windsor EV, and Hyundai Creta EV, which is expected to launch in January 2025.
MSIL continues to hold its market leadership in the overall passenger vehicle segment while expanding its presence in the utility vehicle (UV) space with new product launches. The company has seen strong demand in rural and semi-urban markets, where its distribution network and product offerings are well-suited. With rising income levels in these areas, demand is expected to remain robust in the medium term, according to Mirae Asset Sharekhan’s Q2 update.
With improving semiconductor chip supply and a strong order book, MSIL is expected to maintain strong volume growth, supported by its robust distribution network and significant presence in the rural market.
