Maruti Suzuki joins ₹5 trillion market cap club; stock up 30% from Aug low

Maruti stock hits new high; new launches, starting with its new SUV- the Victoris- is anticipated to enhance its competitive position in the high growth mid-size SUV market and drive export growth.

Maruti Suzuki India share price today

 

Shares of Maruti Suzuki India (MSIL) hit a new high of ₹15,939, gaining 1 per cent on the National Stock Exchange (NSE) in Thursday’s intra-day trade. In the past three trading days, the stock price of the automobile company has rallied 4 per cent after the company announced the introductory price for its all new SUV, the Victoris, starting at ₹10.49 lakh (ex-showroom).

 

Meanwhile, thus far in the month of September, MSIL has outperformed the market by surging 8 per cent, as compared to 4 per cent rise in the Nifty 50. The stock has zoomed 30 per cent from its previous month low of ₹12,225 touched on August 4, 2025, the NSE data shows.

 

 

A sharp rally in stock price has seen MSIL’s market capitalisation cross the ₹5 trillion-mark for the first-time ever in intra-day trade today. At 10:19 AM; with ₹499,743 crore (₹4.998 trillion) market capitalisation, MSIL was quoting 0.56 per cent higher at ₹15,891.  As of date, there are 13 stocks (including Maruti) on the NSE with a market cap in excess of ₹5 trillion, led by Reliance Industries, and included other prominent companies such as HDFC Bank, TCS, Bharti Airtel, ICICI Bank, SBI ,Infosys and Larsen & Toubro. 

What's driving Maruti's stock price?

 

Maruti has seen a weak demand trend as of August 2025. However, this is expected to sharply change going forward, led by its new launch (Victoris), ramp-up of e-Vitara in its key export markets and some stabilization in the small car segment. As a result, Motilal Oswal Financial Services now factors 5 per cent/11 per cent volume growth in FY26/FY27. The brokerage firm kept FY26E margins stable, and raised FY27E margins by about 60bp to 12.2 per cent.

 

Meanwhile, the recent reduction in GST rates from 28 per cent to 18 per cent across most segments in the auto sector may inject fresh demand momentum. This is in addition to the recent rationalisation of personal income tax slabs, interest rate cuts and the upcoming Pay Commission revisions. These factors are expected to increase affordability and stimulate demand, addressing the industry's challenges of muted sales, especially in the entry level segment. 

 

In the backdrop of this favourable environment, MSIL's new launches, starting with its new SUV- the Victoris- is anticipated to enhance its competitive position in the high growth mid-size SUV market and drive export growth. With these favourable macro conditions and new launches, analysts at ICICI Securities project a strong growth for MSIL, factoring in a volume/revenue/EPS CAGR of 8 per cent/ 14 per cent/15 per cent during FY25–28E.  The brokerage firm maintains a BUY rating on MSIL, based on 27x PE (earlier 25x) on Sep’27 EPS to arrive at its target price of ₹17,000 (earlier ₹14,500).

 

Meanwhile, the government's substantial reduction in GST rates on auto segments is poised to be a major catalyst for the sector. The stimulus should drive resurgence in sales, particularly for price-sensitive entry-level segments. Given that the GST rate rationalization has happened before the festive period, analysts at Axis Securities expect to see demand revival from the festive period onwards.

 

Passenger vehicles have witnessed strong growth in the premium SUV category post-COVID, while small cars and compact UVs have lagged due to affordability challenges. GST 2.0, by reducing effective rates on sub-4m cars and compact SUVs (lower-cc engines), could stimulate demand in the mass market, enabling original equipment manufacturers (OEMs) like Maruti Suzuki, Hyundai, and Tata Motors to capture latent middle-class demand, the brokerage firm said.

 

Overall, this integrated policy approach provides a structural catalyst to bridge the post-COVID affordability gap, reset volumes onto a stronger growth trajectory, and deliver a more broad based and inclusive recovery for the Indian automobile industry. From a long-term perspective, the brokerage firm has Upgraded MSIL from HOLD to BUY with a revised target price of ₹16,425/share.