The shares of Maruti Suzuki fell on Wednesday, January 7, ending a six-day rally with a sudden decline of more than 4.5%, the largest single-day fall in nearly 11 months.
The journey, however, was not straightforward. At around 2:45 pm, the stock briefly teased the bulls by rising to ₹16,855, a gain of 2.53% or ₹437 for the day, before losing momentum and slipping again. By the end of the session, the stock was trading at ₹16,567, about 4.2% lower than the previous close. The swift reversal left shareholders surprised and served as a reminder that even market heavyweights can change direction without warning.
Maruti Suzuki Share Price: What Could Make Or Break the Stock Next
- Q3 & Q4 Margins in Focus: HSBC says upcoming quarterly margins will be crucial for Maruti Suzuki’s near-term stock movement.
- Demand Still Strong: Overall demand outlook remains buoyant, offering support to the business.
- Commodity Pressure Risk: Rising commodity costs could squeeze margins and weigh on investor sentiment.
- Key Red Flag: EBIT margins slipping below the 10% mark may disappoint the market.
Maruti Suzuki: Key Performance & Financial Snapshot
| Category | Details |
|---|---|
| December Total Sales | 2.17 lakh units |
| Street Estimate | 2.12 lakh units |
| YoY Sales Growth | 22.2% |
| Domestic PV Sales | 1.78 lakh units (↑ 37.5% YoY) |
| Alto & S-Presso Sales | Up 92% YoY |
Financial Snapshot
| Metric | Value |
|---|---|
| Market Capitalisation | ₹5.27 trillion |
| P/E Ratio (TTM) | 35.75 |
| EPS (TTM) | ₹470.08 |
| 52-Week High | ₹17,370 |
| 52-Week Low | ₹11,059.45 |
| Dividend Yield | 0.80% |
Brokerages Remain Optimistic Despite Short-Term Volatility: Maruti Suzuki Share Price
Long-Term Performance: Despite the sharp intraday correction, Maruti Suzuki’s broader performance remains strong. The stock is up 43% in the past month, around 47% over the last year, and has more than doubled over three years, outperforming the Sensex.
HSBC View: HSBC has reiterated its “buy” rating with a revised target price of ₹18,500 per share. The brokerage highlighted Maruti’s stabilised market share at around 40% and continued strength in demand.
Margin Concerns: HSBC cautioned that EBIT margins falling below 10% could disappoint investors, with rising commodity prices posing a near-term risk.
Bernstein Outlook: Bernstein maintained its “outperform” rating and raised its price target to ₹19,000 from ₹17,800, signalling continued confidence in the stock’s longer-term prospects.