Maruti Suzuki shares fall for seventh day to five-month low; Jefferies flags market share concerns

Shares of Maruti Suzuki India Ltd

., India's largest passenger car manufacturer, fell up to 3% on Thursday, January 29, extending their losses for the seventh straight session. This seven-day fall has taken the stock down to a five-month low.

The last instance of the stock declining for seven straight sessions was between February 4 - February 12, 2025. The seven-day losing streak has resulted in the stock declining 10%.



Brokerage firm Jefferies maintained its "hold" rating on Maruti, but cut its price target to ₹16,000 from ₹17,500 earlier.

The brokerage said that although they remain positive on India's Passenger Vehicle segment demand and Maruti's export growth prospects, they are skeptical on Maruti's India market share or margins witnessing a meaningful improvement.

At the current price, Maruti trades at 25 times its one-year forward estimated price-to-earnings, which is similar to its 10-year average valuation of 26 times.

Jefferies has cut its Earnings Per Share (EPS) estimates for Maruti by 3% to 5% for financial year 2026-2028.

HSBC maintained its "buy" rating on Maruti with a price target of ₹18,000, stating that even if the stock corrects in the near-term, they continue to like it as a "long-term story."

The brokerage also said that the street may have to temper its expectations for financial year 2027-2028 to factor in commodity price headwinds and capacity additions.

Maruti Suzuki shares fell on Wednesday in response to its December quarter results, which were a miss when compared to expectations due to elevated employee expenses. The expenses were higher due to the impact of the new labour codes, which were not accounted for as an exceptional item, but as part of the employee expenses.

49 analysts have coverage on Maruti, of which 39 have a "buy" rating, two say "sell", while the other eight have a "hold" rating.

Shares of Maruti Suzuki India are trading 3% lower on Thursday at ₹14,428, which is a level last seen by the stock in August 2025.