Maruti Suzuki India Ltd. share price target

Maruti Suzuki (MSIL)'s 2QFY21 operating performance was impacted by higher non-RM cost, which diluted the benefits of lower discounts and operating leverage. While demand visibility is good up to Dec'20, whether demand will sustain after this month is currently an uncertainty. We maintain our FY21/FY22 EPS. Maintain Buy, with TP of INR7,850....

For MSIL, share of UVs in total domestic volumes was at 18.2% in H1FY21 vs. 16.6% in FY20. Despite improvement in category mix, however, the company's UV market share has reduced from 24.9% as of FY20 to 22.9% as of H1FY21. Its chief offerings in the category i.e. Brezza, Ertiga, XL6 are witnessing intense competition from the likes of Venue, Nexon, Seltos, Creta and Hector (Exhibit 7). MSIL's commentary suggests that demand for PC category is higher vis--vis UV (i.e. downtrading) post Covid. This could lead...

We expect company's volumes to decline by 13% YoY in FY21E followed by strong growth of 25% and 12% in FY22E/23E respectively. We maintain our BUY rating and TP of Rs.7,920 and continue to value the stock at 25x its FY23E EPS.

Maruti (MSIL) reported in-line Q2FY21 earnings of Rs 13.7bn.

Festive outlook is strong with the company posting strong double-digit growth in deliveries and bookings in Navratra-Dusherra season. We expect strong recovery from FY22 driven by normalisation of economic activity. Operating leverage, cost-control measures, and lower discounting would drive margin improvement going ahead; expect margins to reach historical levels of 1213% in FY23. P/E of 24.7x FY23 earnings is close to historical average but given early recovery...

Driven by increasing preference for personal mobility, better financing availability and strong rural pick up, MSIL printed strong numbers in Q2FY21. EBITDA grew 20% YoY to Rs. 19.3bn with expanded margin at 10.3% (+86bps YoY) led by lower discounts ( Rs 17.3k/vehicle vs Rs.25k in 2Q last year) and cost control measures, partially offset by commodity inflation and adverse FX movement. PV demand has recovered in the past 2-3 months and dealer confidence has improved materially after strong Navratri sales, this...

We initiate coverage on Maruti Suzuki Limited (MSIL) with a BUY rating and a Target price of Rs.7,920, valuing it at 25x of its FY23E P/E ratio resulting in an upside of 16% from current levels.

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...

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...

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...