Whereas home demand stays weak, the brokerage anticipate Maruti Suzuki to outperform its friends on the again of its new launches. We think about MSIL to submit 7.6% quantity CAGR over FY25-27E, led by its new launches and wholesome export outlook. Total, Motilal Oswal expects the corporate to ship a ten% earnings CAGR over FY25-27. At 24.3x FY26E/21.8x FY27E EPS, valuations seem enticing.
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Motilal Oswal Report
For FY26, whereas home demand is more likely to stay weak, Maruti Suzuki India Ltd. is anticipated to outperform friends supported by its new launches. Additional, continued export momentum is more likely to increase volumes. Maruti Suzuki anticipates exports to rise a minimum of by 20% in FY26. Therefore, we think about a 7.6% quantity CAGR over FY25-27E.
Nevertheless, we additionally think about a 50bp margin stress for Maruti Suzuki for FY26E given the anticipated rise in enter prices. Total, we anticipate the corporate to ship a ten% earnings CAGR over FY25-27, pushed by new launches and robust export development.
At 24.3 occasions FY26E/21.8 occasions FY27E EPS, its valuations seem enticing. Reiterate Purchase with a goal worth of Rs 13,985, valued at 26x FY27E earnings per share.
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