e.l.f. Beauty stock plummets 20% as revenue and guidance fall short of expectations
Investing.com - UBS lowered its price target on Maruti Suzuki India Ltd (MSIL:IN) to ₹16,920 from ₹17,000 while maintaining a Neutral rating on the stock.
The price target adjustment follows Maruti’s Q2FY26 performance, where average selling price (ASP) rose sharply to ₹764,200, representing an 11% year-over-year increase and 5% quarter-over-quarter growth, which drove a 3% revenue beat despite just 2% year-over-year volume growth.
Despite the significant ASP surge, Maruti’s gross margins contracted 105 basis points year-over-year, indicating cost pressures that offset pricing gains across the company’s product mix including SUVs, exports, and supplies to Toyota.
Management has provided guidance of 6% growth for H2FY26, which UBS characterizes as modest given expectations of small car recovery following GST cuts in India.
UBS maintains its Neutral stance on Maruti stock, citing limited upside potential due to the cautious industry outlook, elevated spending from the Kharkoda plant ramp-up, margin pressure despite ASP gains, and premium valuations compared to peers.
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