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Maruti Suzuki Share Price: Maruti likely to pick up speed on bourses


“Its likely product offensive over the next three years, especially SUVs, may coincide with replacement demand-led potential upturn in passenger vehicles. That should drive strong volume and EPS CAGR over FY21-24,” said Chirag Jain, analyst, DAM Capital. “Valuations at 23.7 times FY23 estimated earnings are reasonable, supported by strong earnings CAGR, strengthening franchise and steady high return ratios.”
Foreign portfolio investors have consistently increased their stake in the last four quarters from 21.63% in March 2020 to 23.11% in March 2021.
The Maruti Suzuki stock currently trades at 25 times FY22 estimated earnings the most expensive auto stock globally after Tesla, BYD and Ferrari.
Analysts believe that valuations will expand further to 30 times in three years as the Street gains confidence in its earnings rebound, with improving visibility on the new launch cycle. ....

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