Automobile
Auto - 4 Wheelers
from 14,234 today
From a medium-term perspective, the planned launch of seven SUVs and expansion of installed capacity to 4 mn units by FY30E should support sustainable volume growth across both domestic and export markets.
We expect MSIL to sustain its outperformance in FY27, aided by a healthy launch pipeline, revival in car demand, lean inventory, and ramp-up of its two new facilities. We reiterate our BUY rating with a TP of INR17,064, valued at 26x FY28E EPS.
MSIL's Q1FY27 operating revenue was in-line with estimates, while margins faced pressure primarily due to commodity inflation and accelerated cost absorption from change in settlement cycles to support its suppliers. We reiterate 'Accumulate' rating with TP of INR15,000, valuing it at P/E of 25x FY28E EPS.
We maintain our BUY rating on the stock with a target price of Rs 15,920, driven by strong domestic recovery, capacity-led growth, and export leadership, despite temporary margin pressures in Q1FY27.
With the introduction of the 1-liter booster jet engine, Brezza will qualify for the lower 18% GST rate, helping MSIL sustain its outperformance and market share recovery. We reiterate our BUY rating with a TP of INR17,059, valued at 26x FY28E EPS.
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