Brokerages upgrade estimates on Maruti on new launches, positive guidance

An expected improvement in the availability of semiconductors and robust demand outlook in the passenger vehicle market is also driving the upgrades

A positive guidance by Maruti Suzuki India’s management after better-than-expected earnings in the third quarter of the financial year 2021-22 (Q3FY22) and a strong pipeline of new launches, coupled with easing commodity prices, have prompted brokerages to upgrade their earnings estimate and volume outlook for the company.

An expected improvement in the availability of semiconductors and robust demand outlook in the passenger vehicle (PV) market is also driving the upgrades. Maruti expects India’s PV market to grow 7-8 per cent, in line with the economic growth.

In a post earnings report, Nitin Mangat and Sagar Sahu, analysts from Jefferies India, wrote that