Maruti Share Price: Sharekhan says All is Well, retains buy rating with price target of Rs 9000
Sharekhan retains Buy rating on Maruti Suzuki with a revised price target of Rs 9000. Maruti Suzuki Limited is witnessing strong recovery in sales volumes and is likely to have flat yoy sales volume growth in FY2021E, despite a 36.6% yoy decline in first half of FY21. Sharekhan expects Q3 FY21 to be a strong quarter for Maruti, with earnings expected to grow 35% yoy at Rs 2112 cr, driven by 13.4% growth in revenue and 135 bps yoy at 11.5%. Demand in the passenger vehicle (PV) segment remains buoyant even after the festive season.
Sharekhan expects Maruti to register strong volume growth going forward, driven by new product launches, quick economic recovery, upside from COVID-19 vaccines, and low base: Reuters