Maruti Suzuki: Prioritizing market share - what comes next?

研报英文原文证据摘录

Maruti Suzuki: Prioritizing market share - what comes next?

2 August 2026

Venugopal Garre

+65 6326 7643

India Autos venugopal.garre@bernsteinsg.com

Maruti Suzuki India Ltd Param Shah

+91 226 842 1417

Rating param.shah@bernsteinsg.com

Outperform

Price Target

MSIL.IN 16,800 INR (18,200 OLD)

One of the key things we have noticed over past few decades in Autos is that the market

Close Date 31 Jul 2026

tends to reward those who gain market share even when margins remain below peers for an

MSIL.IN Close Price (INR) 14,234

extended period. This has been more evident in recent years, case of TVS Motors, which lags

Price Target (INR) 16,800

every 2W company materially on margins and yet trades at a significant premium to them.

Upside/(Downside) 18%

So if the framework is acceptable for TVS, why should Maruti be judged differently when it is

52-Week Range 17,372/12,201

now showing a similar combination of share gains and temporarily depressed margins?

ASIAX 1,914.70

Maruti Q1 FY27 results have been tricky to decode, as a lot of things seem to be changing FYE Mar

at once. Record volumes, market share at a multi-year high, and profitability fell to levels Div Yield 1.0%

last seen well before the current growth cycle began. The near-term pressure is largely a Market Cap (INR) (B) 4,475.21

function of commodity costs and the decision to absorb them faster through a temporary EV (INR) (B) 4,306.19

move to monthly settlement. The volume strength however reflects genuine, broad-based Performance YTD 1M 6M 12M

demand recovery and a company finally shedding the capacity constraint that held it back for Absolute (%) (14.8) (1.1) 0.2 15.7

the better part of post GST cut growth cycle. The margin weakness reflects a company that ASIAX (%) 17.1 (3.2) 9.4 32.9