Maruti Suzuki Share: Is Now the Right Time to Buy After 25% Dip? 

Synopsis: Large-cap stocks are in focus after plunging 25% from their highs. Here are brokerage views on the stock to assess whether now is the right time to buy, including insights from Jefferies, Nomura, and others.

The shares of the Large-cap automotive company, specialising in the manufacturing, sale, and export of passenger vehicles, light commercial vehicles, and automotive parts, are in the limelight as they have declined from their 52-week High and in this article lets explore if it is the right time to buy Maruti Suzuki.

The company is the country’s leading carmaker and has experienced a bad start to 2026. Following a record-high surge in the first few trading sessions, the stock has taken a sharp downturn, falling roughly 25 percent from its peak and erasing about Rs. 1.32 lakh crore of investor wealth during the same period.

With a market capitalization of Rs. 3,87,501.17 Crores on the Day’s Trade, the shares of Maruti Suzuki India Ltd declined upto 2.55 percent, reaching a low of Rs. 12281.05 compared to its previous close price of Rs. 12602.65. Here’s what brokerages say:

Jefferies On Maruti Suzuki 

The global Brokerage firm Jefferies has continued to give a Hold rating and has lowered the target price from Rs 17,500 to Rs 16,000 with a current upside of 27 percent. Jefferies notes that demand for cars in India remains strong, and Maruti Suzuki’s export outlook is encouraging. This suggests that the broader automotive market and the company’s international business continue to show resilience.

However, the firm has concerns about Maruti’s ability to expand its market share domestically and improve its profit margins. Due to these challenges, Jefferies has lowered its earnings estimates for FY26 to FY28 by around 3% to 5%.

Nomura On Maruti Suzuki

Brokerage firm Nomura has a ‘Neutral’ rating on the stock, with a target price of Rs. 16,118, implying a current upside of 28 percent. Nomura has a similar view, as it says Maruti’s focus on selling more low-end cars, along with expanding production, could hurt profit margins because of rising costs. Also, the increasing popularity of SUVs might make it harder for Maruti to grow its overall market share.

Maruti’s domestic passenger vehicle market share has stayed below 40% in FY26, weighed down by weak small car demand and capacity constraints. While its flexible manufacturing helps shift production across models, it has caused some volatility in dispatches. In February, domestic PV wholesales were nearly flat at 1,61,000 units, with the mini segment steady at 10,238 units and the compact segment, including Baleno, Swift, Dzire, and WagonR, down nearly 9%, showing ongoing weakness in hatchbacks.

Motilal Oswal On Maruti Suzuki

The Brokerage firm Motilal Oswal is more optimistic and has set a Buy rating with a target price of Rs 17,406, implying a current upside of 38 percent. Motilal Oswal notes strong retail demand across both passenger cars and utility vehicles, with production constraints expected to ease starting April 2026. This improvement in supply conditions could help automakers better meet the sustained demand momentum in the market.

Maruti Suzuki India Limited is projected to outpace industry growth in FY27, driven by upcoming launches such as new variants of Brezza, Victoris, and the e-Vitara. The company is also seeing strong export traction, having already crossed its FY26 target of 4 lakh units and now aiming for 7.5–8 lakh units by FY31, implying roughly 25% annual export growth.

Financials & Others

The company’s revenue rose by 28.74 percent from Rs. 38,764 crores in December 2024 to Rs. 49,904 crores in December 2025. Meanwhile, Net profit rose from Rs. 3,727 crores to  Rs. 3,879 crores in the same period.

The company shows solid financial health with a ROCE of 21.7% and ROE of 15.9%, indicating efficient use of capital and good returns for shareholders. It is debt-free with a debt-to-equity ratio of 0, reflecting strong financial stability. Additionally, the PEG ratio of 0.37 suggests the stock may be undervalued relative to its growth, while its P/E of 26.7 is slightly below the industry average of 28.2, making it reasonably valued.

It has also demonstrated strong financial performance, delivering an impressive profit growth of 34.7% CAGR over the past five years. Alongside this growth, it has maintained a healthy dividend payout ratio of 30.5%, indicating a balanced approach between reinvesting for expansion and rewarding shareholders.

In Q3 FY’26, total sales reached 667,769 units, reflecting a strong year-over-year growth of 17.9%. Domestic sales were the primary contributor, accounting for 564,669 units with a robust 20.9% growth and making up 84.6% of total sales. Meanwhile, exports contributed 103,100 units, growing at a slower pace of 3.9% and representing 15.4% of the overall sales mix.

Maruti Suzuki India Limited is India’s largest car manufacturer and a subsidiary of Suzuki Motor Corporation. Established in 1981 as a government-owned company, it later became a private entity after Suzuki increased its stake. Headquartered in New Delhi, Maruti Suzuki played a major role in popularising affordable passenger cars in India, making car ownership accessible to millions of middle-class families.

The company offers a wide range of vehicles, from small hatchbacks like the Alto and Swift to sedans, SUVs, and premium models through its Nexa retail channel. Known for fuel efficiency, reliability, and a vast service network, Maruti Suzuki dominates the Indian passenger vehicle market with a significant share. Its strong distribution system includes thousands of dealerships and service centres across urban and rural areas.

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