The Maruti Suzuki stock hit a fresh 52-week high on Monday after the firm reported Q2 earnings last week that came above estimates. Brokerages have raised their target price post the Q2 earnings of the company.
At 11:48 am, the Maruti Suzuki stock was trading 1.65 percent or 133 points higher at 8248 level on the BSE. The stock hit a fresh 52 week high of 8,282.85 level on the BSE.
Global investment bank Macquarie has kept its outperform rating on Maruti Suzuki unchanged post Q2 results and raised its target price to Rs 10,000 from Rs8250 earlier.
Maruti is the best play on the Indian auto growth. Macquarie expects Maruti to grow ahead of the industry given new model launches and extensive dealership network.
Macquarie sees Maruti Suzuki net profit to grow at a compounded annual growth rate of 17 per cent over March 2020. Macquaries has raised its target price to Rs 10,000 from Rs 8,250 earlier.
Japanese financial holding firm Nomura maintains a buy call on Maruti Suzuki post Q2 results. It has raised its 12-month target price to Rs 9,843 from Rs 8,993 earlier.
There is a high growth visibility and premiumisation is likely to drive profitability. The global investment bank raised volume growth outlook for the current financial year to 15 percent from 13.5 percent due to strong demand.
Nomura dealer check suggests festive demand is up 15-20 per cent (YoY). It expects volume, revenue, and earnings per share to grow at a compound annual growth rate of 13 percent, 17 percent and 21 percent, respectively over March 2020.
Maruti Suzuki India, the country's top-selling car maker, reported a 3.4 per cent rise in its Q2 net profit at Rs 2,484.3 crore, beating analysts' estimates.
The company, majority-owned by Japan's Suzuki Motor Corp, reported net profit of Rs 2,402 crore in the corresponding quarter an year ago.
Analysts on average had expected a net profit of Rs 2229 crore, according to Thomson Reuters data.
Its stock on Friday hit a fresh 52-week high after the earnings were announced.
The firm has raised target its target price to Rs 9843 from Rs 8993 earlier.
Nirmal Bang Securities: Accumulate
Nirmal Bang Securities, which has accumulate rating on the stock said, "Realisation was robust on account of strong sales of models like Swift Dzire, Brezza and Baleno. It is noteworthy that Dzire has continued to remain the best-selling model for two consecutive months, clocking sales of over 30,000 units/month in August and September 2017, while Baleno and Brezza models are not being offered at a discount."