Maruti Suzuki India Ltd. share price target

After operating in a head-winded environment for the last two years, without the support of new product launches, Maruti Suzuki India Ltd (MSIL) is gradually getting back on course for market share and margin recovery. On one hand, MSIL's product lifecycle is turning favorable, and on other hand, supplyside and RM costs are stabilizing. This should aid recovery in market share and margins over the next two years. While EV disruption is a risk, we see an inflection point for e-PVs to be back-ended and MSIL to launch its EVs just in time by CY25E. MSIL is our top pick in Autos. We maintain Buy, with TP of ~INR10,300 (~27x Mar'24E consol. EPS)....

We maintain our BUY rating on the stock and revise our TP upwards to Rs 9,800 (from Rs 8,500 earlier) and value the stock at 27x its FY24E EPS. TP implies an upside of 14% from CMP.

from 14.06% to 14.03%. Preoperation capitalised expenses rose from 0.10% to 0.12%. Other income fell 67.01% to Rs 327.9 crore. PBIDT fell 41.33% to Rs 1890.1 crore. Provision for interest fell 12.76% to Rs 25.3 crore. PBDT fell 41.59% to Rs 1864.8 crore. Provision for...

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...

rose from 23.74% to 31.43%. Employee cost increased from 4.38% to 4.69%. Other expenses 55.76% decline in operating profit to Rs 856.70 crore. Raw material cost as a % of total sales rose from 15.09% to 15.20%. Pre-operation capitalised expenses rose from 0.12% to 0.31%. Other income fell 14.64% to Rs 505.6 crore. PBIDT fell 46.13% to Rs 1362.3 crore. Provision...

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Lowest ever EBITDA margins at 4.2%; 250bps impact from high RM costs. Maruti's 2QFY22 EBITDAM disappointed at 4.2%, led by soaring raw material costs (250bps impact) and low production levels (116k units) regardless of three price hikes over 1HFY22 (~1.9% in Sep-21). Despite strong demand, orders remained unfulffilled due to production cut of 60%/40% in Sep-21/Oct21. Further, 2Q market share declined to 43% vs 48% of FY21 due to new product launches from competitors and rising demand in SUV segment....

We upgrade our rating from HOLD to BUY and revise our TP upwards to Rs 8,500 (from Rs 7,500 earlier) and value the stock at 25x its FY24E EPS, implying an upside of 16% from CMP.

During Q2FY22, MSIL's profit declined by 65.3% YoY to Rs4.8bn (below our estimates Rs7.8bn). Sharp decline in profitability was attributed to lower EBITDA margins which declined by 615bps YoY to 4.2% (below our estimates of 5.5%) and lower other income which declined by 13.2% YoY. MSIL could not produce ~116,000 vehicles during the quarter due to electronics component shortage. Without semiconductor chip shortages, MSIL's volume growth would have been 26% in Q2FY22 vs -3% currently. The Company has more than 200,000 pending customer orders at the end of Q2FY22. We believe the Company falls in the category of Great Company in Temporary Trouble and remain...