6497.70 200.00 (3.18%)
NSESep 25, 2020 03:31 PM
The 45 reports from 18 analysts offering long term price targets for Maruti Suzuki India Ltd. have an average target of 6113.63. The consensus estimate represents a downside of -5.91% from the last price of 6497.70.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-09-23||Maruti Suzuki India ..||ICICI Securities Limited||6501.30||5700.00||6501.30 (-0.06%)||12.28||Sell|
ICICI Securities Limited
Seminal year for industry provides interesting insights However, amid all the gloom, the engineering and production prowess of the industry (along with its value chain) shone brightly as it successfully completed the world's fastest switchover to Euro 6 equivalent emission norms i.e. BS-VI as per schedule. Much of the post festive period was focused on the transition, with the entire ecosystem estimated to have spent ~| 70,000 crore towards the technological leap. Covid-19 crisis struck India in the run up to April 2020, just as the changeover...
|2020-09-10||Maruti Suzuki India ..||Sharekhan||7193.60||8000.00||7193.60 (-9.67%)||23.12||Buy|
Positive outlook for festive season; expect strong double-digit growth from FY22: Maruti retail sales decline has narrowed down to 5% driven by improving economic activities due to unlock measures and increased preference for personal mobility. With improving consumer sentiments and the upcoming festive season, dealers expect sales to improve further. We expect Maruti to resume its positive growth trend from the festive season.FY22 is likely to witness a strong double-digit growth with normalization of economic activity and pent...
|2020-08-04||Maruti Suzuki India ..||Geojit BNP Paribas||6608.90||6748.00||6608.90 (-1.68%)||Target met||Hold|
Geojit BNP Paribas
Maruti Suzuki India Limited (MSIL) is an automobile manufacturer with a 56.2% ownership in Japanese car and motorcycle manufacturer Suzuki Motor Corporation. It is one of the largest passenger car companies and...
|2020-07-30||Maruti Suzuki India ..||HDFC Securities||6265.40||6980.00||6265.40 (3.71%)||Target met||Buy|
RBL Bank: Significant treasury gains and strong NIMs buoyed RBK's 1Q earnings. While QoQ deposit growth was healthy, deposit granularity remains an area of concern. Moratorium trends in the credit card and micro-credit portfolios, where LGDs are high, are concerning. These segments could contribute disproportionately to slippages and LLPs. Provisions are likely to remain elevated in the near term, denting return ratios. This underpins our REDUCE rating. Our price target of Rs 148 remains unchanged. CDSL: CDSL delivered a robust performance both on the revenue and margins front, driven by traction in transaction charges (32% of revenue, +59.2% QoQ). The transaction charges surged due to high retail activity, an increase in delivery volume, and strong addition of new accounts. The COVID-19 impact was felt on KYC revenue (April and May-20) and the addition of unlisted companies. NSDL also witnessed a ~59% drop in the addition of unlisted companies. CDSL continued to gain BO account market share from NSDL(stood at 53.7% in June-20 vs. 48.4% in FY19). Its incremental market share stood at 85% due to exclusive arrangements with discount brokers. BO accounts are the building blocks for a depository and have a high correlation to revenue growth. SEBI allowed Aadhaar-based e-KYCfor account opening, which will boost KYC volumes. We increase the FY21/22E EPS estimate by 20.1/16.8% due to a surge in transaction revenue and expansion in margins. We value CDSL on an SoTP basis by assigning 30x to June-22E core profit and adding net cash to arrive at a target price of Rs 412. The stock...
|2020-07-30||Maruti Suzuki India ..||ICICI Securities Limited||6265.40||5300.00||6265.40 (3.71%)||18.43||Sell|
ICICI Securities Limited
Margin trajectory is seen improving, going forward. Courtesy its early switchover to BS-VI norms and demonstrated acceptance for those products, pricing environment is largely stable for the company. The management said discounting levels are lower QoQ thus far, and thus would support gross margins. Also, enhanced focus on cost controls (material and...
|2020-07-30||Maruti Suzuki India ..||SPA Research||6165.20||5243.00||6165.20 (5.39%)||19.31||Sell|
performance on all fronts during 2QFY20. The reported profit jumped by 21% YoY to Rs2,550mn levels and could be considered as a one-off. The management claims demand recovery, but looks on account of a) lower effective tax rate of 17.8% in Q2FY20 vis--vis 31.0% in Q2FY19, b) better unsustainable as discretionary spends majorly depend on how Covid situation evolves, which...
|2020-07-30||Maruti Suzuki India ..||SMC online||6262.75||6262.75 (3.75%)|
|2020-07-30||Maruti Suzuki India ..||Motilal Oswal||6265.40||6850.00||6265.40 (3.71%)||Target met||Buy|
30 July 2020 MSILs 1QFY21 revenues declined 79% to ~INR41b; EBITDA/PAT loss was reported at ~INR8.6b/INR2.5b. MSILs domestic PV market share declined sharply by 430bp YoY (700bp While MSILs 1QFY21 performance was insignificant as normal operations were there only for two weeks in 1Q, commentary on demand recovery is positive. However, commentary on demand recovery is positive. Management has not given any demand outlook as the situation in dynamic and operating environment is changing frequently. We upgrad our FY21/FY22E EPS by ~13%/5% to factor in for cost cutting initiatives, higher other income and lower depreciation. Maintain QoQ) to 47.3% in 1QFY21 due to supply side challenges. Net realization saw steep increase of 9.3% QoQ (+13.2% YoY) to ~INR536k (v/s est. ~INR471k) as non-vehicular revenue contribution was very high, though vehicle ASP were stable. Gross margin contracted ~120bp QoQ (140bp YoY) due to sharp decline in inventory levels (impact of INR1.1b or 3.
|2020-07-30||Maruti Suzuki India ..||Nirmal Bang Institutional||6262.75||5887.00||6262.75 (3.75%)||Target met||Accumulate|
Maruti Suzuki India- 1QFY21 Result Update- Dismal quarter; portfolio to benefit from changing trends
Nirmal Bang Institutional
Dismal quarter; portfolio to benefit from changing trends Downgrade to Accumulate Maruti Suzuki reported a loss of Rs2.49bn for 1QFY20, higher than NBIE estimate of Rs1.43bn. The miss was mainly due to lower operating performance. EBITDA margin stood at -21% as against 10.4% in 1QFY20 and 9.2% in 4QFY20. Total income came in at Rs41bn, down 79% YoY. ASP was up 3.2% YoY vs our expectation of 3% decline. The management refrained from giving forward guidance given the huge uncertainty around Covid-19. Car buying is a discretionary purchase and affordability and sentiments will play key role in demand recovery. The management expects shift from public transport and shared mobility towards personal mobility....
|2020-07-29||Maruti Suzuki India ..||Prabhudas Lilladhar||6358.95||6858.00||6358.95 (2.18%)||Target met||Buy|
Led by lower volumes due to COVID, MSIL reported an EBITDA/PAT loss. Operationally gross margins were lower at 28.5% (PLe 30.5%, flat YoY) led by impact of inventory ramp down to an extent Rs1.1bn (which will normalise in...
|2020-07-20||Maruti Suzuki India ..||HDFC Securities||6130.85||6750.00||6130.85 (5.98%)||Target met||Buy|
We believe that stock price returns will be more gradual from here on as expectations of a recovery in volumes is partially priced in. Against this backdrop, we recommend Maruti and Endurance as our preferred sector picks. Volume growth over 1QFY21 was uneven as production was initially impacted by the plant shutdown in Apr 2020, while retail demand picked up sharply in June. Correspondingly, valuation multiple for auto companies re-rated from trough levels to above mean P/E levels. NIFTY Auto index is up 51% from the Mar 2020 levels (vs. 28% for the broader NIFTY). The rally has been driven by several factors, including (1) recovery in volumes for rural segment/increased preference for personal mobility, (2) improved focus on capital allocation, and (3) benign sector valuations
|2020-05-22||Maruti Suzuki India ..||Hem Securities||5134.30||5400.00||5134.30 (26.55%)||Target met||Hold|
Maruti Suzuki India Ltd (formerly Maruti Udyog Ltd) is India's largest passenger car company, accounting for over 50 per cent of the domestic car market. The company is a subsidiary of Suzuki Motor Corporation of Japan which has held 56.28% stake in Maruti Suzuki. The company is engaged in the business of manufacturing, purchase and sale of motor vehicles and spare parts (automobiles, along with several other activities including ...
|2020-05-18||Maruti Suzuki India ..||SMC online||4805.30||4805.30 (35.22%)||Results Update|
Sales volume for the period fell by 16%yoy to 385025 vehicles with domestic sales down by 16%yoy to 360428 vehicles and exports down by 16.9% yoy to 24597 vehicles. The fall in domestic sales was largely due to drop in volumes in all segments barring mini segment, which posted a growth of 6.8% to 69372 vehicles. The fall in domestic volume was largely due to continuity of general slowdown in demand in first two months of the quarter and Covid 19...
|2020-05-14||Maruti Suzuki India ..||HDFC Securities||5114.05||5810.00||5114.05 (27.06%)||Target met||Buy|
We increase our FY21/22E EPS by 4%/flat. We continue to value the stock at 23x on FY22E EPS (which is at a ~5% premium to long term historic average trading multiple) with a TP of Rs 5,810. Key risks: extended impact due to COVID, increase in competitive intensity. We upgrade Maruti Suzuki to a BUY as we believe that the OEM is expected to gain market share in the current downturn, given its dominant position in the entry level/compact car segment, where the co has a market share of 65% (vs. 51% overall). Maruti will benefit from its gasoline driven portfolio as the breakeven for diesel vehicles has further increased after the introduction of BSVI variants. As the company has a robust balance sheet, with cash reserves of ~Rs 400bn (~25% of market cap), we expect the industry leader to withstand the downturn due to its scale and robust balance sheet.
|2020-05-14||Maruti Suzuki India ..||East India Securities Ltd||5100.40||4901.00||5100.40 (27.40%)||Target met||Hold|
East India Securities Ltd
operating leverage and higher discounts in the market. This has led to a subdued operational on account of a) lower effective tax rate of 17.8% in Q2FY20 vis--vis 31.0% in Q2FY19, b) better performance. Topline declined by 15.2% YoY to Rs 181bn in Q4FY20, while margin contracted by operational performance, c) higher other income and d) exceptional gains of Rs760mn. 2HFY20 205bps YoY to 8.5% for the quarter. Bottom line degrew by 28%YoY to Rs 12.9bn in Q4FY20 despite is expected to be better than 1HFY20 with reasonable growth in exports and presence of levers some support from lower tax rate. We believe change in the consumers approach towards...
|2020-05-14||Maruti Suzuki India ..||ICICI Securities Limited||4720.95||4650.00||4720.95 (37.64%)||28.44||Sell|
ICICI Securities Limited
Best case estimates peg lower double digit decline in FY20! Covid-19 is a black swan event, which has brought the entire economy to a standstill. It was a further blow to the automobile sector, which was already struggling with weak consumer sentiment with domestic sales volume down 18% YoY in FY20. With movement of people highly restricted as well as income levels taking a hit, car purchase as a discretionary spend is expected to take a backseat. A caveat, however, is the initial signs of people traversing from shared mobility/public transport to personal mobility. However, there...
|2020-05-14||Maruti Suzuki India ..||Prabhudas Lilladhar||5100.40||5830.00||5100.40 (27.40%)||Target met||Buy|
MSIL's 4QFY20 results were operationally weak wherein the company reporting an EBITDA margin at 8.5% (PLe 9.1%). However, gross margin arrived six quarter high at 29.7% despite one time impact of BS4 conversion cost at Rs1.25bn (~60bp). While PBT came in-line at Rs15.8bn, lower tax rate at 18% (PLe 26%) boosted adj PAT at Rs12.9bn (PLe Rs10.9bn). We believe MSIL is not only beneficiery of likley trend of shift towards personal mobility...
|2020-05-14||Maruti Suzuki India ..||IDBI Capital||5114.05||5570.00||5114.05 (27.06%)||Target met||Accumulate|
MSIL Q4FY20 results were below our and consensus estimates at operating level. EBITDA margin declined to 8.5% vs our and consensus estimates of 9.7%. Margins were majorly impacted due to higher other expenses. Adj. PAT for the quarter stood at Rs12.9bn marginally above our estimates of Rs12.5bn. We believe lockdown and risk aversion has significantly impacted footfalls at dealerships. Being discretionary in nature, demand for 4W to be significantly impacted even post lockdown, given likely erosion of purchasing power with lay-offs, pay-cuts etc. We expect 4W industry to decline in double digit in FY21. The challenges for the industry and MSIL are likely to get...
|2020-05-14||Maruti Suzuki India ..||Nirmal Bang Institutional||5100.40||5780.00||5100.40 (27.40%)||Target met||Buy|
Nirmal Bang Institutional
Maruti Suzuki reported 4QFY20 adjusted earnings at Rs14.2bn, down 21% YoY and below NBIE estimate of Rs14.5bn. The miss was mainly due to lower operating performance. Adjusted EBITDA margin stood at 9.2%, which is down 100bps QoQ and 130bps YoY and below our estimate of 9.9%. Total income was reported at Rs182bn, down 15% YoY. ASP was down 1.3% YoY vs our expectation of 1% growth. The adjustment was in the form of one-time write-off of inventories of BS4 related parts. Management refrained from giving forward guidance given huge uncertainty around Covid-19. Car buying is a discretionary purchase and affordability and sentiments will play key role in demand recovery. Management stated that all the research...
|2020-05-14||Maruti Suzuki India ..||LKP Securities||4891.95||5559.00||4891.95 (32.82%)||Target met||Buy|
Maruti Suzuki India Ltd (MSIL) posted a weak set of numbers in Q4FY20 on the back of 16% volume decline and weak sentiments. The company had to write-off a cost of 125 cr associated with BS4 discontinuation in Q4. Margins came in at 8.5%, lowest since last seven years. These were lower by 680 bps and 170 bps, yoy and qoq respectively. This was on the back of low capacity utilization, higher discounts and advertising expenses. Revenues de-grew by 15.2% yoy and 12.1% qoq in line with higher volume decline. EBITDA plunged by 32% yoy and 26.4% qoq as employee costs to sales (4.8% v/s 3.9% yoy) and other expenses to sales (17.7% v/s 14.3% yoy) all increased on negative operating leverage and higher advertising and marketing expenses. PAT came in at 12.97 bn down...