Maruti Suzuki India Ltd. share price target

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...

MSIL Q1FY21 results were below our and consensus estimates at operating and PAT level. EBITDA loss came at Rs8.63bn vs our estimated loss of Rs633mn. Reported loss was Rs2.5bn vs our estimated loss of Rs573mn. We believe lockdown and risk aversion has significantly impacted footfalls at dealerships. We expect demand for 4W to remain muted even post lockdown and lower replacement demand. We expect 4W industry to decline ~15-18% in FY21 and more demand for pre-owned cars, subscription based models and small cars. We cut our FY21 volume/revenue estimates by 7%/12% respectively and expect recovery in FY22 with 11%/15% increase in volume/revenue. We change our rating to REDUCE (earlier...

Maruti Suzuki Q1FY21 results: reported Net loss of Rs.266.90 crore; Production challenges persist; misses Street estimates Consolidated sales for the period was down by 79% to Rs 4110.60 crore and the OP was a loss...

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.

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...

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...

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...

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 ...