Market share, margin gains to keep Maruti on the fast lane

A strong product line-up and better product mix are main triggers

Despite the 56 per cent returns generated over the past year and valuations at new highs, analysts believe the Maruti Suzuki stock has more steam left. Over the past few days, they upgraded its target price to Rs 8,500–9,000 levels, which translates to potential gains of 12-18 per cent from the current price of Rs 7,602. So, what is driving analysts positive on Maruti, even as it posted a subdued show in the June quarter (Q1), especially on the margin front?

Robust July sales numbers is one factor. A strong new product line-up as well as scope for margin expansion