Maruti Suzuki share price outperforms Sensex in last one year; experts say stock to stay in fast lane

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Maruti Suzuki share price traded lacklustre on Wednesday. The stock fell over half a per cent in intraday trade on BSE and looked on course to extend the losses into the second consecutive session. The stock ended 0.30 per cent lower in the previous session.

However, Maruti has outperformed the equity benchmark Sensex in the last one year. The stock has gained about 17 per cent while the Sensex has risen 11 per cent in the last one year. Maruti Suzuki share price hit its fresh record high of ₹10,568.20 in the previous session on September 12 on BSE.

On a monthly basis, the stock has been in the green since April this year. In September so far, the stock has gained nearly 5 per cent. Experts are positive about Maruti Suzuki stock which is enjoying a bullish run due to its robust June quarter numbers, optimism over the company's growth outlook and improved sentiment for the automobile sectors.

Brokerage firm Motilal Oswal Financial Services has a buy call on the stock with a target price of ₹11,900 - an upside potential of about 13 per cent. Motilal Oswal has raised the stock's EPS (earnings per share) estimates for FY24/FY25 by 5-6 per cent to reflect the sharp improvement in the SUV mix, fueled by new product launch benefits since July 2023. "Stable growth in domestic PVs (passenger vehicles) and a favourable product lifecycle augur well for Maruti Suzuki.

We expect market share gains and margin recovery in FY24 driven by an improvement in supplies, a favourable product lifecycle, mix benefit and operating leverage," Motilal Oswal said. The stock is trading above its 200-day simple moving average as well as its 200-day exponential moving average. If we consider the key valuation metrics of the stock, its current PE