Maruti Suzuki Share Price Target: Emkay Bullish As Trump Tariffs Loom Large - See Analysis

Broking Firm Emkay has raised its rating on Maruti Suzuki India Limited (MSIL) from 'Add' to 'BUY', accompanied by a revised target price of Rs 13,500 with the current market price of Rs 11,722. This upgrade reflects Emkay's optimistic outlook on MSIL's growth trajectory despite a subdued near-term environment in the passenger vehicle (PV) industry.

Positive Outlook on New Launches and Market Expansion
The bullish stance is underpinned by MSIL's upcoming launches of two new ICE SUVs slated for FY26E—a 5-seater expected from September 2025 and a 7-seater anticipated from January 2026. According to industry sources, these launches could potentially contribute significant monthly volumes of approximately 18,000 to 20,000 units combined.

Emkay's report notes that these launches, alongside the recent introduction of the E-Vitara electric SUV, position MSIL favourably amidst a recovering small car segment. Recent indicators of a 2% growth in small car sales during December-January, following a prolonged decline, further bolster the bullish thesis.

Strategic Initiatives and Growth Targets
Furthermore, Emkay highlights MSIL's strategic initiatives aimed at expanding its market share and product portfolio. These include plans to double manufacturing capacity to approximately 4 million units annually by 2030, along with launching nine new models by 2028. The company also aims to enhance its export volumes threefold by the end of the decade.

Financial Performance and Valuation
Despite challenges such as high discounts impacting profitability, MSIL managed to maintain a robust Q3 performance with a 11.6% margin. Emkay projects a margin improvement to 12.5% by FY27E, driven by a favorable product mix with a higher share of SUVs.

Emkay's valuation analysis suggests that MSIL is currently trading at attractive levels, approximately 1 standard deviation below its long-term average (LTA) from a 10-year perspective, with a price-to-earnings ratio of 21x Mar-27E earnings.
 
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