Buy Maruti Suzuki Ltd For Target Rs. 18,050 By JM Financial Services Ltd
MSIL Victoris launched with aggressive pricing
MSIL has launched the Victoris SUV at an introductory price of INR 1.05mn (ex-showroom), placing it in competition with segment leaders like the Hyundai Creta and Kia Seltos. By retailing it through the Arena network, Maruti aims to expand its reach across tier-2 and tier3 cities, while avoiding overlap with the Nexa-sold Grand Vitara. Victoris stands out with a 5- star Global NCAP rating, Level-2 ADAS, and is the only SUV in its class to offer both strong hybrid and factory-fitted CNG options with an underbody tank. Additionally, with the commencement of MSIL’s battery plant, we expect a series of new hybrid launches. The integration of in-house battery production is also likely to support higher margins. Furthermore, the Victoris will be manufactured exclusively in India and is expected to be exported globally, reinforcing MSIL’s ambitions for international competitiveness and growth. Moreover, the recent GST rate cut (from 29–31% to 18%) on small cars (in the INR 0.8mn– 1.0mn range) is a major positive for MSIL, which has ~69% of its portfolio in this segment. Hence, we have revised our volume estimates upward by 4.1%/8.8% for FY26E/FY27E. Correspondingly, EBITDA margin estimates have been adjusted upwards from 11.4% / 12.0% to 12.1% / 12.8% for FY26E / FY27E and our EPS estimates have been revised upwards by 9.1% / 17.5% for FY26E / FY27E. We ascribe a 27x PE multiple to arrive at a March’27 fair value of INR 18,050. We maintain BUY.
* Victoris – a promising launch: Maruti Suzuki’s Victoris marks a turning point in the brand’s safety and tech narrative. Once seen as lagging in safety, MSIL now leads with the Victoris earning a 5-star Global NCAP rating. The Victoris comes equipped with six airbags, electronic stability control, and is the first Arena model to feature Level-2 ADAS. It also brings advanced features such as premium infotainment such as Dolby Atmos, comfort and connected features. With petrol, strong-hybrid, and factory-fitted CNG variants - featuring an innovative underbody tank - and plans to export to over 100 markets, the Victoris signals MSIL’s intent to be both tech-forward and globally competitive. Victoris is offered across six trims and is priced between INR 1.05mn and INR 2.00mn.
* Its position vis-à-vis competition: The MSIL’s Victoris stands out in the mid-size SUV segment with a compelling mix of pricing, powertrain diversity, safety, and premium features. Priced between INR 1.05mn and INR 2.00mn, it is competitively positioned against rivals like the Grand Vitara, Hyundai Creta, and Kia Seltos. While all four offer similar petrol engine capacities, the Victoris and Grand Vitara are the only ones to feature strong hybrid and factory-fitted CNG options. The Victoris also leads on safety with a 5- star Global NCAP rating, compared to the 3-star ratings of Creta and Seltos, and it is the first Arena model to offer Level-2 ADAS. Overall, Victoris offers a well-rounded package that blends affordability, innovation, and safety - making it a strong contender in its class.
* Our view: The launch of the Victoris marks a significant shift in Maruti Suzuki’s strategy - moving decisively toward safety-first engineering and premium feature offerings, all while maintaining a competitive price point. In our view, the Victoris is well-positioned to gain strong traction in the mid-size SUV segment. Additionally, with the commencement of MSIL’s battery plant, we expect a series of new hybrid launches. The integration of inhouse battery production is also likely to support higher margins. Furthermore, India is expected to become a key export hub for MSIL, reinforcing its global ambitions.
Please refer disclaimer at https://www.jmfl.com/disclaimer
SEBI Registration Number is INM000010361
