Shares of Maruti gained over 2% on Wednesday and are nearing the mark of ₹12,000. The stock has gained over 15% so far in the first three months of the year.
The stock has gained over 50% from its 52-week low of ₹8,127, which it fell to in March last year.
Brokerage firm CLSA in a note on Wednesday wrote that CNG passenger vehicles are on the rise and this will benefit companies like Maruti and Tata Motors.
The brokerage is expecting the market share of CNG passenger vehicles to rise from 15% in financial year 2024 to 22% in financial year 2030 due to the lower running costs of CNG vehicles compared to their Internal Combustion Engine (ICE) counterparts.
CLSA also believes that Maruti will maintain its top position in the segment with a 72% market share.
Out of the 49 analysts that track Maruti, 40 of them have a "Buy" recommendation on India's largest passenger car manufacturing company. Six of those analysts have a "hold" rating, while three still advice "selling" the stock.
| Brokerage | Rating | Price Target |
| Centrum | Buy | ₹ 15,082 |
| Citi | Buy | ₹ 14,200 |
| CLSA | Accumulate | ₹ 12,890 |
| Emkay | Reduce | ₹ 10,700 |
| Axis Capital | Sell | ₹ 9,000 |
Maruti At ₹15,000 In The Long-Term?
"Maruti is bucking market volatility and riding a huge trend. The major structure target is set at ₹13,700, which might be achieved in the next 12 to 16 months, while the short-term target is ₹12,360. Its ideal for long term investors to hold & accumulate more only a decline & avoid chasing momentum," said Sacchitanand Uttekar of Tradebulls.
"Maruti has been in a strong uptrend since 2005 with consistent formation of higher highs and higher lows. It has been moving higher in a 18-year rising channel pattern and has managed to sustain above its channel support area. It witnessed a 6-year consolidation pattern breakout on the monthly charts which was followed by further consolidation, thus making it a lucrative buy for a 50% upside," said Gaurav Bissa of InCred Equities.
"It is trading above Williams Alligator indicator which is likely to act as a strong support at lower levels and is likely to restrict the fall. The RSI is trading at 65 levels on the monthly charts which once crosses and sustains 70 can push it towards 85 levels, which in turn can push the stock prices towards ₹15,000 levels," he added.
Among the analysts that track the stock, only Centrum Broking has a target in excess of ₹15,000 for Maruti. Its target of ₹15,082 is the highest on the street for Maruti.
In an interaction with CNBC-TV18 on March 4, Maruti's Shashank Srivastava said that the company is hopeful of crossing 2.7 lakh units of exports by the end of this month.
Maruti's SUV market share is now at 22% with overall market share in February at 43% due to the rise in SUV market share.
Shares of Maruti Suzuki are currently trading 3% higher at ₹11,940.
First Published: Mar 20, 2024 11:13 AM IST
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