Maruti Suzuki Share: 8th Pay Commission Boosts Maruti Suzuki Shares! An increase of over 4 percent

• 8th Pay Commission meetings for central employees begin
• Increase in demand in the market due to increase in salary of employees
• Shares of Maruti Suzuki benefited from it

Maruti Suzuki Share : The impact of the news of the commencement of the 8th Pay Commission meetings for central employees is now visible in the stock markets. The increase in employee salaries is likely to boost car sales with the hope that the market demand will also increase. This can benefit Maruti Suzuki India Limited, a leading company in the auto sector. The company’s shares rose more than 4% on Wednesday, April 29, after one brokerage firm reported the news and others commented on the company’s March quarter results. The company’s results were almost in line with expectations. Shares of Maruti were trading at Rs 13,454, up 4.36% on BSE around 11:30 am.

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Raw material prices also affect profitability

The country’s largest passenger vehicle maker reported double-digit revenue growth, but profits remained under pressure due to a sharp decline in other income and increased tax payments. While rising raw material prices have also affected profitability, there has been some relief due to price hikes and cost controls. Dealers currently have approximately 12 days of inventory available. The company is preparing to launch seven SUVs by FY30.

What did the brokerage firms say?

Out of 49 analysts covering Maruti, 43 have given a buy rating, four have a hold rating, and two have a sell recommendation.
BOB Capital has set the highest target price at ₹18,821.
1. HSBC (HSBC: ‘Buy’)

Target Price : ₹15,000
Why to buy: The company has handled commodity inflation well so far. The 10% volume growth guidance is positive and indicates improving demand. Company can benefit from 8th Pay Commission.

2. Jefferies: Hold on

Target Price : ₹13,800
Why to buy: EBIT rose 30% in the March quarter, but net profit fell 3% due to lower interest income. Demand for passenger vehicles is steady, but the company’s market share has fallen to a 13-year low. This is due to the growing trend of SUVs.

3. UBS: Neutral

Target Price : ₹13,970
Pressure on raw materials and low rebates limited profit growth. The company expects a 10% growth in domestic sales in FY 2027 and an increase in the number of first-time car buyers (51%). Exports will depend on geopolitical conditions. Additionally, the capital expenditure (capex) for capacity expansion has been increased to Rs 1,400 crore.

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