Maruti Suzuki India Ltd shares rose beyond Rs 13,000 for the first time on Monday, with India's largest car maker's market capitalization reaching 4.09 lakh crore ahead of its March quarter results on Friday, April 26.

On Tuesday, the Maruti Suzuki India stock reached a record high of Rs 1,3010, up about 2%. On a year over year and quarter over quarter basis, the fourth quarter is often the greatest period for passenger car players. Motilal Oswal highlighted that the PV segment saw good growth of 19% YoY and 20% QoQ, whilst other categories experienced a decrease in demand.

Axis Securities forecasts a 54.9 percent year-on-year increase in profit at Rs 4,064 crore and a 20.4% year-on-year increase in revenue at Rs 38,585 crore. Ebitda margin is expected to rise to 13.5 percent from 11.7 percent sequentially.

"We estimate total revenue to rise by 20.4 percent year on year owing to greater overall unit sales, a stronger product mix (a higher absolute number of SUVs), and export sales. Ebitda may outperform top-line growth year on year due to a richer product mix (a greater percentage of SUV), price increases implemented during the period, and RM cost tailwinds. Ebitda margins are expected to grow 300 basis points year on year (up 175 basis points QoQ) due to price increases, a richer product mix, favorable FX, and an RM tailwind over the previous year," it added.

Axis Securities forecasts a 54.9 percent year-on-year increase in profit at Rs 4,064 crore and a 20.4% year-on-year increase in revenue at Rs 38,585 crore. Ebitda margin is expected to rise to 13.5 percent from 11.7 percent sequentially.

"We estimate total revenue to rise by 20.4 percent year on year owing to greater overall unit sales, a stronger product mix (a higher absolute number of SUVs), and export sales. Ebitda may outperform top-line growth year on year due to a richer product mix (a greater percentage of SUV), price increases implemented during the period, and RM cost tailwinds. Ebitda margins are expected to grow 300 basis points year on year (up 175 basis points QoQ) due to price increases, a richer product mix, favorable FX, and an RM tailwind over the previous year," it added.

InCred Equities, which has a target price of Rs 12,554 for Maruti Suzuki India shares, believes that high double-digit EBIT margin sustainability will drive the upgrade, while volume growth recovery and the success of new launches would take time.