Credit Suisse maintains outperform rating on the stock with an increased target price to Rs 3,500 apiece (from Rs 3,020 earlier).
Shares of Maruti Suzuki India touched an all-time high of Rs 2,799 on the Bombay Stock Exchange, up as much as 1.6 percent in early trade Monday on hopes of gaining market share and expansion of operating profit margins. Credit Suisse maintains outperform rating on the stock with an increased target price to Rs 3,500 apiece (from Rs 3,020 earlier). The brokerage says Maruti remains top pick in the Indian autos space, and is both an Asia ex-Japan and Global focus list stock. "We raise FY16 earnings per share estimate by around 3 percent and introduce FY17 estimates, which are 15 percent higher than the street's," it adds. Credit Suisse expects the industry to witness a 12 percent compounded annual growth rate (CAGR) and Maruti to grow faster on a 5 percent market share gain in the next three years. The domestic market share of the company has risen to 44 percent in June quarter compared to 40.4 percent in the year-ago period with the sales in urban markets increasing by 12.4 percent and rural market sales rising by 26 percent in Q1FY15. Car ownership costs have remained flat for two years on account of stable gasoline prices and flat EMIs (high discounts and duty cuts) should help a volume recovery, says Credit Suisse.
Shares of Maruti Suzuki India touched an all-time high of Rs 2,799 on the Bombay Stock Exchange, up as much as 1.6 percent in early trade Monday on hopes of gaining market share and expansion of operating profit margins. Credit Suisse maintains outperform rating on the stock with an increased target price to Rs 3,500 apiece (from Rs 3,020 earlier). The brokerage says Maruti remains top pick in the Indian autos space, and is both an Asia ex-Japan and Global focus list stock. "We raise FY16 earnings per share estimate by around 3 percent and introduce FY17 estimates, which are 15 percent higher than the street's," it adds. Credit Suisse expects the industry to witness a 12 percent compounded annual growth rate (CAGR) and Maruti to grow faster on a 5 percent market share gain in the next three years. The domestic market share of the company has risen to 44 percent in June quarter compared to 40.4 percent in the year-ago period with the sales in urban markets increasing by 12.4 percent and rural market sales rising by 26 percent in Q1FY15. Car ownership costs have remained flat for two years on account of stable gasoline prices and flat EMIs (high discounts and duty cuts) should help a volume recovery, says Credit Suisse.
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