Prabhudas Lilladher has upgraded Maruti Suzuki to 'Buy' from its previous 'Accumulate' rating, setting a target price of ₹13,750 in its research report dated October 28, 2026. The brokerage has raised its target price from ₹13,150 and values the stock at 23x Sep'28E EPS, reflecting increased confidence in the company's near-term prospects. This upgrade comes alongside Motilal Oswal's buy rating with a target price of ₹14,800 issued on October 27, 2026, indicating broad consensus among brokerages on the stock's potential.
Maruti Suzuki's Q2FY27 operating revenue was fairly in-line with estimates, while margins improved as the company partially reverted to quarterly commodity settlement cycle with its suppliers. As per Prabhudas Lilladher's analysis, the company's performance was supported by operational improvements despite challenging market conditions. The brokerage notes that exports volumes are expected to be flattish due to geopolitical issues overshadowing healthy underlying demand, which could partly impact realizations and margins in the short term.
Prabhudas Lilladher estimates volume/realization CAGR of 9.7%/4.0% over FY26-29E, translating into revenue/EBITDA/APAT CAGR of 14.0%/13.3%/12.1% respectively. The brokerage expects Maruti Suzuki to sustain its outperformance in FY27 supported by a healthy launch pipeline, recovery in domestic passenger vehicle demand, lean channel inventory, and capacity ramp-up at its two new facilities. Despite RM inflation continuing to impact the industry, the firm believes the recent correction in the stock provides a good entry point with expectations of earnings upgrades.
The brokerage expects Maruti Suzuki to deliver a 11% earnings CAGR over FY26–28E, indicating sustained growth momentum despite current challenges. According to Prabhudas Lilladher's analysis, the company's strong fundamentals and strategic positioning in the Indian automotive market support this optimistic earnings trajectory, with the recent stock correction creating attractive entry opportunities for investors.
