Maruti Suzuki Share Price: Concerns about underperformance ‘exaggerated’, Motilal Oswal expects 29% jump – Market

Brokerage Motilal Oswal has given a target price of Rs 17,406 while maintaining BUY rating on the stock. This target indicates a possible rise of about 29% compared to the closing price of Wednesday, the previous trading day.

Motilal Oswal estimates Maruti Suzuki’s earnings to grow at a compound annual growth rate (CAGR) of 16% during FY25-28.

Reason for recent underperformance

According to the brokerage, Maruti Suzuki’s performance in recent months has been weaker than the auto index. The main reasons for this have been weak wholesales and disappointing results of the December quarter. The company’s shares gained about 1.7% in the month of February, while the Nifty Auto Index rose 5.2% in the same period.

Hope from strong retail demand

However, the brokerage says that the company’s retail demand still remains strong, especially in the car and SUV segments. After the GST rate cut in September, demand for cars has picked up and Maruti Suzuki is emerging as the major beneficiary of this trend.

According to Motilal Oswal, currently capacity limitations are affecting the company’s wholesale growth. But this obstacle can be removed after the new production capacity is installed from April 2026.

Can get boost from new model launch

The brokerage believes that the company’s strong launch pipeline can further accelerate growth in the coming times. This includes the recently launched Victoris and e-Vitara, the soon-to-come Brezza upgrade and another new model in FY27.

These new launches and recovery in the car segment are likely to boost the company’s market share again, which could support the stock’s performance in the coming years.

Export will become the main driver of growth

Suzuki Japan is shifting most of its export market production to India. It has also made India its global production hub for e-Vitara and Victoris.

Furthermore, the brokerage said the alliance of Toyota and Suzuki is going to provide long-term growth opportunities as Toyota’s global markets are now accessible to Maruti.

Motilal Oswal said Maruti Suzuki has already surpassed its export target of 4 lakh units for financial year 2026 in February 2026 due to strong demand momentum in several markets. He further said that the automaker continues to work towards its medium-term target of exporting 7.5 lakh to 8 lakh vehicles by financial year 2031.

Given these circumstances, Motilal Oswal expects the automaker to post 25% export volume CAGR during FY25-28.

stock performance

Maruti Suzuki shares closed 2.7% lower at ₹13,500 in the previous session. The stock has fallen 11.9% last month and 19.2% so far this year. The stock price saw a rise of 13 percent in one year, while the stock saw a rise of 14 percent in two years.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.