Healthy order book, launches to help Maruti take the growth wheel

Market share, margin recovery remain key triggers for the stock, say brokerages

August sales growth at 26 per cent for the country’s largest passenger vehicle (PV) maker - Maruti Suzuki India (MSIL) - was marginally lower than Street estimates. Fewer production days and an ongoing supply disruption led to sequential volume caving in 6 per cent.

However, a cast-iron order book and exciting launches are expected to sustain the volume growth momentum in 2022-23 (FY23) for the PV sector - and the market leader. Most brokerages expect the sector to register growth upwards of 21 per cent for FY23.

While a healthy order book (currently at 380,000 units) and launches will keep