Maruti Suzuki Shares Dive 4.5%, HSBC Flags Margins as Crucial for Future

• Maruti Suzuki shares dropped over 4.5% to ₹16,567, marking the biggest single-day fall in 11 months and ending a six-day winning streak.
• HSBC maintained a 'Buy' rating with a ₹18,500 target but warned that Q3/Q4 EBIT margins below 10% and commodity price volatility are critical risks.
• Bernstein reiterated an 'Outperform' rating, raising its target price to ₹19,000, showing continued confidence in the stock.
• The company reported strong December sales of 2.17 lakh units, exceeding expectations and showing a 22.2% YoY increase, with domestic PV sales up 37.5%.
• Despite the recent dip, Maruti Suzuki's stock had climbed approximately 43% in the last month before Wednesday's sharp decline.

Why It Matters: Maruti Suzuki shares saw a sharp fall despite strong sales, with future margins being a key concern for analysts.