stocks to buy 2023: Stocks for 2023: Analysts betting on Maruti Suzuki as PV segment seeing best-ever times

Having risen more than 12% year-to-date, shares of the automaker have given double-digit returns for the first time since 2017. Year-to-date, Nifty 50 has gained a little over 5%.

The stock remains a bet in the automobile pack for 2023 for most brokerages given the bullish outlook for passenger vehicle demand in the domestic market. Analysts expect

to regain some of its mojo back in the passenger vehicle segment.

Among the 42 analysts tracking the company, for 24 of them the stock is a “strong buy”, according to Trendlyne.

Until a couple of years back, Maruti Suzuki held a leadership position in the automobile sector with more than 50% market share.

However, its market share dipped to around 43% primarily due to a slowdown in the sales of entry-level cars as consumer preference shifted to premium segments such as sports utility vehicles (SUV).

Players like and Mahindra & Mahindra have an upper hand in the SUV segment, and the lack of any major products in this category saw Maruti Suzuki losing some of the market share.

However, the country’s leading automaker is confident of restoring its market share through

new product launches in the compact SUV space.

In the June quarter, Maruti Suzuki lost its top position in the utility vehicle segment to Tata Motors. In a bid to gain back the market share, the automaker launched revamped Brezza

and Grand

, which has received good response.

The confidence in a rebound in demand, Maruti Suzuki stuck to its guidance of meeting

2 million units sales in FY23.

India’s automobile demand is recovering from its worst slowdown in decades, and brokerage Jefferies India expects strong 17% annual growth in sales volume for passenger cars over

the next three years.

“Over FY22-25, we see EPS quadrupling for MSIL (Maruti Suzuki),” the brokerage, for whom the stock remains a top bet in the automobile space, said in a note.

For

Institutional Securities too, Maruti Suzuki is a big bet in 2023. The brokerage’s 12-month target price for the stock is Rs 11,000, implying a potential upside of over 33% from the current levels. The stock ended 1.4% higher at Rs 8,256.80 on the NSE on Monday.

“After two consecutive years of volume decline, we believe that MSIL is at the cusp of a new upcycle. New model launches in the coming months, healthy order book and commodity/currency tailwinds will further support strong performance going ahead,” the brokerage said in a note.

For

Broking too, Maruti Suzuki is a pick for 2023 and the brokerage expects the stock to test Rs 9,000-9650.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)