Shares rose nearly 1% to close at ₹8,770 apiece on the NSE – their highest levels in two months. Citi, CLSA and Nuvama have raised their respective price targets and see up to 50% upside from current levels. Analysts raised earnings estimates on expectations that the company will gain leadership in the SUV segment with two new launches.
“At its current valuation, MSIL (
) will benefit from a strong franchise, a favorable product cycle, a favorable product mix and commodity advantages – overriding margin concerns,” Nuvama (formerly ) said in a customer note. Of the 35 analysts who have looked at the company’s earnings, 25 of them have a “Buy” or “outperform” on the stock. Seven analysts remain neutral while three of them have a sell rating, a Bloomberg analyst poll showed. In total, these analysts raised the consensus price target by 1% to ₹10,498.07. translates into a potential upside of 20% from current levels.
“After two consecutive years of declining volumes, we believe MSIL is on the cusp of a new bull cycle. New model launches, a healthy order book and favorable winds for leveraged core/operating products will support more strong performance going forward,” said in a client note. The brokerage values the stock at 25 times its one-year forward price-to-earnings ratio as it raised the price target.