Maruti Suzuki Shares Drop 2% After Q1 Results; Brokerages See Buying Opportunity Maruti Suzuki India Limited’s shares fell by 2% following the release of its FY27 first-quarter results, with trading at 13,901 rupees marking a sharp decline from the opening level of 14,300. The stock’s drop came amid weaker-than-expected operating performance, as the company’s margins faced pressure from rising commodity costs and supply chain disruptions. The market capitalization of the automaker stood at 4.39 lakh crore rupees after the decline. Brokerages have responded to the share price drop by highlighting the potential for a buying opportunity, with several firms issuing target prices and positive outlooks. HSBC maintained a "Buy" rating on Maruti Suzuki shares, setting a target price of ₹16,000 per share, which implies a potential 12% upside from the closing price on the day of the results. The firm noted that while margins were pressured by commodity price volatility, the company’s margins have already reached their lowest point and are expected to improve in subsequent quarters as demand remains robust. Kotak Institutional Equities also expressed confidence, retaining an "Add" rating and setting a target price of ₹14,600 per share. The brokerage attributed the weaker-than-expected EBIT margin in Q1 to lower-than-anticipated gross margins, partly due to the company’s temporary shift to a monthly supplier cycle. Analysts at Kotak emphasized that the firm’s performance in the first quarter is likely to stabilize as commodity costs ease and demand for vehicles remains strong. Nomura, however, adopted a more cautious stance, maintaining a "Neutral" rating with a target price of ₹14,071 per share.#maruti_suzuki #hsbc #kotak_institutional_equities #nomura #maruti_suzuki_india_limited
