Maruti Suzuki's market cap to hit ₹5L crore mark soon
What's the story
Maruti Suzuki, India's largest automaker, is on the verge of joining the ₹5 lakh crore market capitalization club. The company's shares hit a record high today, rising nearly 1% to a new peak of ₹15,384. So far in 2025, Maruti's stock has gained an impressive 41%, its biggest annual jump since 2017.
Market performance
A look at the valuation surge
The latest surge in Maruti's market value comes after a long wait of nearly 16 months. The company added ₹80,000 crore to its market capitalization since crossing the ₹4 lakh crore mark in March 2024. Currently, there are 12 companies with a market capitalization of over ₹5 lakh crore, according to BSE data.
Government impact
Share price surge attributed to GST rate cuts
The recent surge in Maruti's shares can be attributed to the government's decision to cut GST rates on automobiles. The move has raised hopes of a revival in passenger vehicle demand, especially for small cars that account for nearly half of Maruti's revenue. Brokerages have also revised their target prices higher, considering Maruti Suzuki as the biggest beneficiary of the GST reduction.
Market shift
Small cars are the biggest losers
Small cars, defined as petrol vehicles with engine capacity below 1,200cc and diesel below 1,500cc, not exceeding four meters in length, have seen a decline in sales as buyers moved to larger SUVs. However, with GST rates on small cars reduced from 28% to 18%, hopes are high that demand for these budget-friendly models could pick up again.
Analyst predictions
Brokerage firms raise share price targets
Global brokerage firm Bank of America Securities (BofA) has raised its share price target for Maruti Suzuki to ₹17,000 per stock from ₹14,000. ICICI Securities has also increased its target price to ₹17,000 per share with a 'buy' rating. They believe that the recent GST rate cut across most auto segments could spur fresh demand momentum and increase affordability in the market.