Q4 profit after 1% yo to Rs. Maruti Suzuki shares after Rs 3,911 crore. Should you buy, sell or catch?

Compared to Rs 3,952 crore in the same period last year, Maruti Suzuki India’s stock will be focused after the company has reduced its integrated net profit of 1% (YO) in the March quarter. However, the profit was higher than the street estimate of Rs 3,801 crore.

The country’s largest passenger carmaker recorded a total revenue of Rs 40,920 crore for Q4FY25, which is 6.4% higher than Rs 38,471 crore a year ago. Revenue from the sale of products is Rs. 38,842 crore, while other operating petting revenue contributed 2,078 crore.

Reduction in profitability was mainly due to new costs, sales promotion and advertising costs, as well as elevated manufacturing overheads and administrative costs.

Prior to interest and tax (EBIT), operating paying earnings fell 14.2% to 3,392 crore in the quarter, up from Rs. 3,956 crore. As a percentage of sales, EBIT margin fell to 210 basis points to 8.7%.

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Should you buy, sell or catch Maruti Suzuki’s stock? Here’s what brokerage says:

Novels

Nuwama maintained a ‘buy’ rating on Maruti Suzuki, but the target price has made Rs 13,900 to Rs 13,400.

MSILA revenue increased by 6% to Rs. 406.7 billion, which is widely estimated. However, EBITD fell short, which was down 9% to Rs 42.6 billion against an estimate of Rs 49.8 billion, mainly due to costs of new greenfield projects, R&D and digitization efforts. Factoring in the cost of cost, Nuwama reduced its fiscal year 26E and FY 27E EBITDA estimates 6% and 4%, respectively.

Despite this, the brokerage sees the support of the e-Vitara model and the hopeful launch of the new ICE, SUV and CNG segments, such as growth and strong exports. Nuwama has predicted a revenue of 9% and 10% on the financial year 25-227E and EBITD CAGR, as well as with a healthy return to over 50% invested capital (ROIC).

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Selective brokers

Choice Broking downgraded Maruti Suzuki to a ‘ad’ rating with a revised target price of Rs 12,410.

Brokerage notes a strong distribution network of MSIL, leading low-income product portfolio, new EV segment launch and increasing export volumes. However, it expects a single-digit growth for the domestic PV industry in FY 26 between global economic instability, inflation and increasing life costs.

Accordingly, Choice Broking reduced its financial year 26/27 EPS estimates by 3.8% and 3.0%, respectively, and value the company at 22x (previously 24x) FY27E EPS.

(Connection: The recommendations, suggestions, opinions and opinions provided by experts have their own. This does not represent opinions of economic time)