Maruti Suzuki India's target Rs 12400: IIFL Securities's Top Stock to Buy Today

On January 16, IIFL Securities issued a buy recommendation for Maruti Suzuki India at the current market price of Rs. 12129.6. Analysts at the firm have set a target price of Rs. 12400, indicating an upside potential of approximately 2.2%. The call is based on the company's strong market share in the domestic automobile industry, its cost-efficient manufacturing operations, and its focus on new product launches. Additionally, the positive outlook for the automotive sector and the potential for margin expansion are considered favorable factors.

About Maruti Suzuki India:

Maruti Suzuki India Limited (MSIL) is a leading automobile manufacturer in India. Established in 1981 as a joint venture between Maruti Udyog Limited and Suzuki Motor Corporation of Japan, MSIL has grown to become the country's largest passenger car company. Headquartered in New Delhi, MSIL operates 14 manufacturing facilities and over 3,000 dealerships across India. The company produces a wide range of vehicles, including hatchbacks, sedans, SUVs, and vans. MSIL's popular models include Swift, Dzire, Alto, Ertiga, and XL6. The company is known for its affordable and reliable vehicles, making it a dominant force in the Indian automotive industry.

52 Week Price Trend:

Maruti Suzuki India's current market price (CMP) of Rs 12129.6 is closer to its 52-week high of Rs 13680 than its 52-week low of Rs 9737.65. This indicates that the stock has been performing well recently and is currently trading near its highest point in the past year. Investors who purchased the stock near the 52-week low have likely seen significant gains, while those who purchased near the 52-week high may be facing some losses. The stock's performance in the coming weeks and months will depend on various factors, including the overall market conditions, the company's financial results, and the competitive landscape in the automotive industry.

Stratzy's MOST Analysis:

Maruti has a MOST rating of AA, indicating a medium level of fundamental risk. The MOST framework evaluates companies based on management, outlook, safety, and trend. Maruti's AA rating means that it has a strong management team, a positive outlook, a solid financial position, and a favorable market trend. This indicates that Maruti is a financially sound company with a strong track record and a promising future.

Company's Fundamentals:

Maruti Suzuki India Ltd. (NSE: MARUTI), a renowned automaker, exhibits key financial metrics that provide insights into its valuation and income-generating capacity. As of the latest available data, the company's stock price-to-earnings (PE) ratio stands at 26.33, indicating that investors are willing to pay 26.33 times the company's annual earnings per share to own its stock. The price-to-book (PB) ratio of 4.14 suggests that the market is valuing Maruti Suzuki's assets at 4.14 times their book value. This implies a premium valuation compared to its tangible assets. Additionally, the company offers a dividend yield of 1.06%, indicating that investors receive an annual dividend of 1.06% relative to the current stock price.

Fundamental and Technical information provided in this blog were last updated on 16 Jan, 2025

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