Maruti Suzuki India Ltd. share price target

MSIL's Q2 FY21 revenues grew by 10.4% yoy and 380% qoq to 187.4 bn on the back of strong recovery in volumes, which grew by 16.2% yoy driven by pent-up demand stemming from personal mobility, Realizations fell by 5.6%/6.3% yoy and qoq respectively, due to shift to low value hatchbacks and absence of diesel variants. EBITDA margins stood at 10.3%, 80bps higher yoy on lower selling and operating expenses and higher capacity utilization, which was partly offset by adverse product mix, higher commodity prices and currency fluctuations. Discounting in the quarter was at 17.3K v/s 25 k yoy. PAT for the quarter. On the back of lower other income (34%...

Maruti Suzuki India Limited is the market leader in the PV segment, commanding a market share of about 50%. The Company has 2 state-of-the-art manufacturing facilities located in Gurugram and Manesar in Haryana, capable of producing ~1.5 mn units per annum.

MSIL Q2FY21 results were below our and consensus estimates at revenue and Adj. PAT level due to lower realisation and lower other income. EBITDA margin for the quarter stood at 10.3% vs our and consensus estimates of 9.5% and 10.6% respectively. We believe pent demand and preference for personal mobility has helped MSIL to register good numbers during festive season. We marginally cut our volume/revenue estimates for FY21E/FY22E factoring lower premium car sales and lower realisation due to absence of diesel portfolio/adverse product mix. We also cut our other income estimates for FY21E/FY22E factoring the lower yields. We introduce our FY23 estimates...

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.