Buy Maruti Suzuki; target of Rs 17,406: Motilal Oswal March 12, 2026 / 12:45 IST Motilal Oswal’s research report on Maruti Suzuki highlights that the company’s recent underperformance relative to the Auto index is primarily attributed to near-term challenges in the wholesale segment and a disappointing third-quarter performance. However, the firm argues these concerns are overstated, citing strong retail demand for Maruti Suzuki’s cars and utility vehicles (UVs). This demand is reflected in the company’s outperformance in retail sales following the GST cut. The report notes that Maruti Suzuki’s wholesale sales have been constrained by capacity limitations, but this is expected to improve starting in April 2026 with the ramp-up of new production capacity. The firm anticipates Maruti Suzuki will outperform industry growth in fiscal year 2027, supported by a robust launch pipeline. Key upcoming models include a new Brezza variant, the recently launched Victoris and e-Vitara, and at least one additional new launch in fiscal year 2027. Maruti Suzuki’s export momentum is also expected to remain strong as the company works toward its medium-term target of 750,000–800,000 vehicles by fiscal year 2031. It has already surpassed its FY2026 target in February 2026. The report further suggests that rising input costs will be mitigated through reduced discounts, improved product mix, and normalized pricing in the car segment. Overall, the firm projects Maruti Suzuki will achieve a 16% compound annual growth rate (CAGR) in earnings from fiscal years 2025 to 2028. Motilal Oswal reiterates its BUY recommendation for the company, setting a target price of Rs 17,406, which is based on a valuation of 26 times the December 2027 earnings per share (EPS).#maruti_suzuki #motilal_oswal #brezza #victoris #e_vitara
