Maruti Suzuki share price: Jefferies sees it at Rs 12000 - Rs 16590 - whopping 50-110% upside
Maruti Suzuki share price: Jefferies find risk reward favourable and retain Buy on Maruti. The sharp 22% fall in PV demand over FY19-21E has created a favourable base for double digit CAGR in coming years. If one assumes demand recovers to 4.5-7.0% CAGR trend line over FY19-25E (1 - 1.7x GDP), passenger vehicles ( PVs) need to rise at a strong 14-19% CAGR next four years.
Maruti's FY25 EPS can rise to Rs 480 – Rs 553 in these scenarios, and Jefferies sees a fair value of Rs 12000 – Rs 16590/sh at 25-30x PE, implying 50-110% upside in three years: Reuters