Maruti Suzuki India Ltd. share price target

Maruti Suzuki India Limited (MSIL), a subsidiary of Suzuki Motor Corporation, is India's largest passenger car company, accounting for over 50% of the domestic car market....

MSIL reported revenue of Rs224.6bn, 28% increase over 1QFY18 revenue of Rs175.5bn. Sales volume in the quarter grew by 24% YoY on the back of strong growth witnessed in Baleno and Dzire sales. MSIL reported below expected EBITDA on account of cost pressure from commodity prices and adverse foreign currency. EBITDA margin increased YoY and QoQ to 14.9%. MSIL reported PAT of Rs19.8bn, 27% growth over 1QFY18 PAT of Rs15.6bn. However PAT came in well...

MSIL reported volume growth of 24.3% YoY and revenue growth rate of 28% YoY in Q1FY19. The base was low because of multiple events such as cascading effects of DEMO and implementation of GST. We expect the outperformance of MSIL (with management guidance of double digit volume growth) to the industry growth rate to continue going forward because of expansion in rural areas, new launches and through premium customer...

MSIL Q1FY19 result was below our and consensus estimates on operating level. EBITDA for the quarter were below our and consensus estimates due to lower realizations and higher RM cost. EBITDA margin for the quarter stood at 14.9% vs our and consensus...

Maruti Suzuki India Ltd (MSIL)'s Q1 FY19 numbers came a bit below our expectations as margins were hurt despite top-line growing at 28% yoy and 6% qoq. Volumes in the quarter were at a high of 4.9 lakh units, growing by 24% yoy and 6% qoq, while realizations growth was flat both on yoy as well as qoq basis. Upbeat volume performance came on the back of strong new DZire and Swift sales and strengthening franchise of Vitarra Brezza and Baleno. The company did not take any price hike during the quarter, despite RM prices moving up. EBITDA margins came up at 14.9%, which is a rise on both qoq and yoy basis on better product mix. However they have come on a low...

In its own league Retain HOLD: MSIL's Q1FY19 operating performance was in line with our estimates. It reported 24.3% volume growth in Q1FY19. This is a 5th year of average double digit growth. With 2500 distribution centers and 6 blockbuster models (Dzire, Swift, Alto, Baleno, WagonR and Vitara Brezza) it currently dominates the Indian car market.

Maruti Suzuki (MSIL) reported Q1FY19 numbers that were below our estimates. Net revenues at | 22459 crore, up 28% YoY, 6.1% QoQ came in below our estimate of | 22600 crore. The topline growth was driven by 24.3% YoY volume growth & 2.4% YoY ASP growth. ASPs were at | 444682/vehicle vs. our estimate of | 452175/vehicle Volumes for Q1FY19 were at 490479 units, up 24.3% YoY. Of this,...

For 1QFY2019, Maruti Suzuki India (MSIL) posted strong numbers both on top-line and bottom-line fronts. MSIL reported ~28% yoy top-line growth to `22,459cr on back of strong volume growth (up ~24% yoy) and price hike (up~3% yoy). The company's operating margins improved by robust 163bps yoy. On the bottom-line front, MSIL reported growth ..

Maruti Suzuki (MSIL) reported a healthy Q1FY19 operating performance, though net profit (+27% YoY) was affected by a sharp dip in other income (60% YoY) due to the adverse impact of rising bond yields on the investment portfolio. Going ahead, we expect better rural sales, higher availability of capacity and stable RM prices to help MSIL post healthy growth over FY18-FY20. Maintain BUY with a slightly reduced Mar'19 target price of Rs 10,875 (vs. Rs 11,100 earlier), as we trim FY19E/FY20E EPS by 5.4%/4.7% to factor in lower other income....

Maruti Suzuki India (MSIL) has delivered a subdued performance in 1QFY19 owing to lower operating margin and sharp fall in non operating income led by MTM losses. While its revenue grew by 28% YoY (+6% QoQ) to Rs224bn, EBIDTA grew by 44% YoY (+11% QoQ) to Rs33.5bn. Led by adverse exchange rate, input cost inflation and higher discounts, its PAT growth restricted to (+27% YoY and -4% QoQ) to Rs19.7bn. Better product-mix and price hike helped YoY growth in ASP. Its EBIDTA margin expanded by 163bps YoY (+68bps QoQ) to 14.9% (vs. our estimate of 15.1%) mainly owing to higher cost of imported inputs due to adverse exchange rate. Its Other Exp/Sales fell by 31 bps YoY and 137 bps QoQ to 12.6%, while its RM/Sales rose by 111bps QoQ...

Maruti Suzuki India Ltd (MSIL) is the largest passenger vehicle (PV) manufacturer in India having market share of ~53% currently. Company has dominant position across all the major segments

JPY appreciation to raise costs for MSIL: Japanese Yen (JPY) has been appreciating against the INR recently. JPY has appreciated by about 7% against the INR in the past six months. Maruti Suzuki India Limited (MSIL) imports raw materials (majorly electronic related) from vendors in Japan. Imported raw material accounts for about 10% of MSIL topline....

ICICI Securities Ltd | Retail Equity Research Maruti Suzuki (MSIL) reported its Q4FY18 numbers, which were below estimates on the operational front. Net revenues at | 21166 crore, up 15.4% YoY, 9.8% QoQ came in above our estimate of | 21144 crore. The topline growth was driven by 11.4% YoY volume growth & 2.7% YoY ASP growth. The revenues were higher as discounts were lower than estimated at | 13880 crore Volumes for Q4FY18 were at 461773 units, up 11.4% YoY. ASPs...

an inline operating performance for the quarter. The topline at Rs 21,166 cr is up 15% y-o-y driven by a 11% y-o-y volume growth on account of strong demand for its recent launches. The realizations per vehicle is up 3% y-o-y attributable to a favorable product mix and price hikes taken by the company. The operating margins for quarter at 14.2% expanded 29 BPS y-o-y coming slightly...

MSIL 4QFY17 results, were below our and consensus estimates on operating level. EBITDA for the quarter were below our and consensus estimates due to higher employee and other expenses. Other expenses were up due to higher royalty expenses, higher freight rate expenses, auto expo expenses and newly lunched SWIFT. Employee expenses were up due to change in gratuity act which led to have one time expenditure. Subsequently EBITDA margin for the quarter declined -160 bps QoQ due to higher operating expenses. Increased share of new models and cost reduction efforts were partially offset by adverse commodity prices....

We expect MSIL to achieve volume growth of ~11% CAGR over FY18-FY20E with help of new capacity and de-bottle necking at existing plants. We also expect sizable increase in first time buyers from rural revival and government's rural focus. We estimate MSIL to record an EPS of Rs 391.7 on revenues of Rs 1,068.6bn in FY20E. In view of ~22% EPS CAGR, ~21% RoE and market share gain, we expect MSIL to trade to historical up-cycle multiple of ~25x and we have positive...

Maintain NEU with revised TP of Rs 9,432 (25x FY20E EPS). Maruti Suzuki (MSIL) posted inline revenues at Rs 212bn (+15% YoY) in 4QFY18, with 11.4% YoY vol growth and +3.6% net ASP. EBITDA (Rs 30bn, +18% YoY) with margin at 14.2% (est. 15.8%) was dragged by higher marketing spend (Auto Expo + new Swift launch) and adverse FX impact on royalty (5% Yen appreciation vs INR). APAT rose 10% to Rs. 18.8bn.

MSIL reported 4QFY18 with EBITDA margin at 14.2% (+30bps YoY, -150bps QoQ). Topline at INR 206bn (+14% YoY, +9% QoQ), in-line JMFe, was driven by 11% YoY volume growth and 3% expansion in realisation on healthy sales mix and lower discounts. Although EBITDA margin remained almost flat YoY, a steep sequential increase in other expenses due to bunching-up of multiple headwinds led to 150bps decline in margin in 4QFY18. With no material price hike taken during CY18, we expect some announcement going forward to offset commodity and exchange rate pressure. SMG production has reached an annualised rate of 230K units (93% utilisation). Rural segment is witnessing healthy 15% volume...

We see demand recovery from rural areas as model like Alto witnessed ~5.6% growth in FY18following six years of de-growth (except FY15). Coupled with rural recovery,this is a reflection of first-time buyers making a comeback. MSIL would be the biggest beneficiary of rural market recovery due to (a) its unparalleled reach,(b) large part of its dealer addition being targeted at rural markets, and (c) over 35% of volumes coming from rural markets. MSIL is targeting ~4k sales outlets (~2.8k in FY18E, implying 12.8% CAGR in FY18-20E)and ~5k workshops (~3.3k in FY18) by 2020. To support dealer viability, it is also investing in land parcels for leasing it to dealers on long-term leases. MSIL should grow much faster than the industry, led by ~13% CAGR in distribution network and continued healthy growth with existing dealers due to favorable product life cycle.

Q3FY18 EBITDA was in line with estimates. EBITDA margin at 15.8% was strong, as cost reduction offset high raw material costs and seasonal uptick in discounts. More importantly, royalty (5.3% in Q3) on models launched after Jan 2017 will be lowered (quantum unknown).