Current Rating and Its Significance
MarketsMOJO’s 'Hold' rating for Maruti Suzuki India Ltd indicates a balanced outlook for the stock. It suggests that investors should maintain their existing positions rather than aggressively buying or selling at this stage. This rating reflects a combination of factors including the company’s quality, valuation, financial trends, and technical indicators, which together imply moderate growth potential with some caution warranted.
Quality Assessment
As of 15 February 2026, Maruti Suzuki maintains a good quality grade. The company’s operational metrics demonstrate robust fundamentals, including a low debt-to-equity ratio averaging zero, which highlights a conservative capital structure and limited financial risk. This strong balance sheet is complemented by healthy long-term growth, with net sales expanding at an annual rate of 21.62% and operating profit increasing by 51.18%. Such figures underscore the company’s ability to generate consistent revenue and profitability growth over time.
Valuation Perspective
The stock currently holds a fair valuation grade. Maruti Suzuki’s price-to-book value stands at 4.8, which is in line with its peers’ historical averages, indicating that the market is pricing the stock reasonably relative to its book value. The company’s return on equity (ROE) is 14.8%, reflecting efficient utilisation of shareholder capital. Despite a solid 20.28% return over the past year, profit growth has been modest at 2.7%, resulting in a high PEG ratio of 12. This elevated PEG suggests that the stock’s price growth has outpaced earnings growth, which may temper valuation enthusiasm among investors.
Financial Trend Analysis
Financially, Maruti Suzuki’s trend is characterised as flat as of today. The company reported steady but unspectacular results in the December 2025 half-year period, with a return on capital employed (ROCE) at 19.15%, which is the lowest in recent times. Additionally, the debtors turnover ratio stands at 20.79 times, indicating efficient receivables management but no significant improvement over previous periods. These flat trends suggest that while the company remains stable, it is not currently exhibiting strong upward momentum in its financial performance.
Technical Outlook
From a technical standpoint, the stock is rated as mildly bullish. Recent price movements show a 1-day decline of 0.63%, a 1-week gain of 1.51%, and a 6-month appreciation of 18.68%. However, shorter-term trends have been mixed, with a 1-month decline of 7.30% and a 3-month drop of 3.35%. Year-to-date, the stock has fallen 8.84%, reflecting some volatility. These technical signals suggest cautious optimism, with the stock showing resilience over the medium term but facing near-term headwinds.
Stock Returns and Market Position
As of 15 February 2026, Maruti Suzuki has delivered a 20.28% return over the past year, outperforming many peers in the automobile sector. The company’s large-cap status and high institutional ownership of 38.68% provide additional stability and confidence, as institutional investors typically conduct thorough fundamental analysis before committing capital. This backing can be reassuring for retail investors seeking a degree of safety in their holdings.
Implications for Investors
The 'Hold' rating advises investors to maintain their current exposure to Maruti Suzuki while monitoring developments closely. The company’s strong quality metrics and fair valuation suggest it remains a solid core holding. However, flat financial trends and mixed technical signals imply limited near-term upside, making it prudent to await clearer signs of growth acceleration or valuation improvement before increasing positions.
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Company Profile and Market Context
Maruti Suzuki India Ltd is a leading player in the Indian automobile sector, classified as a large-cap stock. Its market position is supported by a strong brand presence and a diversified product portfolio. The company’s conservative debt profile and consistent sales growth underpin its resilience in a competitive market environment. Investors should consider these factors alongside broader sector trends when evaluating the stock’s prospects.
Summary of Key Metrics as of 15 February 2026
To summarise, the stock’s key metrics include a Mojo Score of 62.0, reflecting the 'Hold' grade, a low debt-to-equity ratio of zero, and a ROE of 14.8%. The stock’s price movements have been mixed in the short term but positive over the longer six-month horizon. Institutional investors hold a significant stake, which often signals confidence in the company’s fundamentals and governance.
Conclusion
Maruti Suzuki India Ltd’s current 'Hold' rating by MarketsMOJO, updated on 12 January 2026, reflects a balanced investment stance. While the company exhibits strong quality and fair valuation, flat financial trends and mixed technical signals counsel caution. Investors are advised to maintain their holdings and monitor the stock’s performance closely for signs of renewed growth or valuation improvement before making further investment decisions.
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