The firm likes India’s largest passenger car manufacturer, as it sees the stock to befit from the GST reforms in India. Over 50% of Maruti’s product mix belongs to small cars and high operating leverage also keeps the stock in good stead.
Maruti Suzuki India’s June quarter results were a beat on analyst expectations and Morgan Stanley’s analyst sees double-digit revenue growth in financial year 2026 for the company, supported by new model launches, a better product mix and rising share of exports.On the flip side, Chris Wood of Jefferies in his GREED & fear note on Friday mentioned that he has made only one change to his India long-only equity portfolio.
As part of the change, the 4% weightage in Aditya Birla Real Estate will be removed, and will be replaced by a equal weightage in Mahindra & Mahindra. Jefferies has a price target of ₹4,200 on Mahindra and Mahindra, which is the second-highest on the street for the stock.
Auto stocks like Maruti and Hero MotoCorp have rallied on hopes that the GST on automobiles could be rationalised lower, which in-turn, would boost demand ahead of the upcoming festive season.
Shares of Mahindra & Mahindra are trading 2.7% lower at ₹3,202.6, while those of Maruti Suzuki are trading little changed at ₹14,752, close to its all-time high of ₹14,895. The stock has gained 20% in the last one month, while M&M’s shares have remained flat.
First Published: Aug 29, 2025 9:50 AM IS
