Maruti Suzuki share price hits record high for 17th time in over a month on GST cuts — Is it a stock to buy?

It was another bull day for Maruti Suzuki, as the stock touched a fresh record high of ₹16,375 apiece, gaining nearly 2% in Wednesday's trade (September 24), despite cautious sentiment in the Indian stock market. The day’s lifetime high also marked the 17th record high in just over a month, as investors see auto stocks among the potential beneficiaries of GST rate cuts.

The rally was further supported by target price upgrades from multiple brokerage firms, positioning Maruti Suzuki's stock among the best performers in the recent auto sector run-up and helping it stay higher for the eighth straight week. During this period, it has grown by 32%, translating its year-to-date gains to 50%.

Goldman Sachs lifts Maruti share price target to ₹18,900

In another optimistic outlook, global brokerage firm Goldman Sachs upgraded its rating on Maruti Suzuki's stock to 'Buy' from 'Neutral' and raised its target price to ₹18,900 apiece from ₹13,800, citing the potential pickup in demand for entry-level cars following GST cuts and price adjustments.

The brokerage also noted favourable exposure to the 8th Pay Commission in the upcoming auto demand cycle and highlighted Maruti Suzuki’s relatively low carbon dioxide risk compared to peers, as the company is estimated to comply with the Corporate Average Fuel Efficiency (CAFE) 3 norms by FY28.

In terms of sales, the brokerage projects the company volumes to grow by 5%, 12%, and 9% in FY26, FY27, and FY28, respectively, compared to industry growth of 4%, 8%, and 9%, and raised its earnings-per-share (EPS) estimates for FY26–28 by up to 12%.

Earlier, Morgan Stanley revised its target price higher to ₹18,360 while maintaining an 'Overweight' rating. Bank of America (BofA) also raised the target price to ₹17,000, while other global brokerage firms such as Citi and HSBC also lifted their targets to ₹17,500 and ₹17,000, respectively, maintaining a bullish outlook on the stock, indicating strong confidence in Maruti Suzuki’s near- to mid-term growth prospects.

Festive-season trends indicate renewed demand for small cars

Meanwhile, early trends and dealer channel checks have shown that the first day of the festive sales during the ongoing Navratri season has seen a healthy demand. According to the media reports, Maruti Suzuki received around 80,000 inquiries and delivered nearly 30,000 passenger vehicles on Sunday, calling it its strongest start to Navratri in the last 35 years.

The automaker said ever since September 18, when it announced an additional price reduction, over and above the GST revision, it has received 75,000 bookings, with nearly 15,000 coming in every day, which is 50% higher than the usual.

Maruti's current discount schemes are expected to continue through the end of September, in addition to the price cuts.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.