Motilal Oswal keeps 'buy' on Maruti Suzuki despite MTM losses
Motilal Oswal says Maruti Suzuki is still worth buying, even though its latest quarterly profits fell short due to MTM losses, resulting in lower other income.
The good news? Its EBITDA margin actually beat expectations at 8.9% (vs. the 8.1% estimate), showing the company's core business is holding strong.
Motilal Oswal expects 11% earnings growth
Looking ahead, things seem upbeat for Maruti: new car launches and growing demand in India are fueling optimism.
While rising costs and tricky export markets might pinch margins short-term, Motilal Oswal still expects an 11% annual earnings growth through fiscal 2028 and sees potential for more market share gains.
Even after trimming its FY27 (fiscal 2026-27) earnings forecast by 7%, they're sticking with their buy call and high target price because of Maruti's solid position in the market.