Buy Maruti Suzuki India; target of Rs 13,500: Choice Institutional Equities

Moneycontrol • 4 days ago

Original source

Key Investment Pillars

  • Maruti Suzuki India's domestic wholesale dispatches exceeded 565,000 units in Q2FY27, growing 37.8% YoY, driven by the new Victoris and Brezza.
  • The company's domestic market share increased by 2.2 percentage points YoY to 40.8%, reflecting broad-based growth across segments.
  • Annual production capacity increased to ~2.9mn units following the addition of 500,000 units during H1FY27, with the management expecting at least 10% domestic volume growth in H2FY27E.
  • Commodity inflation, margin recovery, and export logistics remain key monitorables.

Thesis Validation Checklist

  • Investors should watch for domestic volume growth, margin recovery, and export performance over the next 12 months to validate the thesis.
  • Key signals include the company's ability to maintain its market share, improve profitability, and navigate commodity inflation and regulatory changes.
  • A strong order book, with pending orders increasing to 270,000 units by 20 October 2026, and improving affordability, with first-time buyers accounting for 51% of customers, are positive indicators.