Maruti Suzuki India Ltd. share price target

operating leverage and higher discounts in the market. This has led to a subdued operational on account of a) lower effective tax rate of 17.8% in Q2FY20 vis--vis 31.0% in Q2FY19, b) better performance. Topline declined by 15.2% YoY to Rs 181bn in Q4FY20, while margin contracted by operational performance, c) higher other income and d) exceptional gains of Rs760mn. 2HFY20 205bps YoY to 8.5% for the quarter. Bottom line degrew by 28%YoY to Rs 12.9bn in Q4FY20 despite is expected to be better than 1HFY20 with reasonable growth in exports and presence of levers some support from lower tax rate. We believe change in the consumers approach towards...

MSIL's 4QFY20 results were operationally weak wherein the company reporting an EBITDA margin at 8.5% (PLe 9.1%). However, gross margin arrived six quarter high at 29.7% despite one time impact of BS4 conversion cost at Rs1.25bn (~60bp). While PBT came in-line at Rs15.8bn, lower tax rate at 18% (PLe 26%) boosted adj PAT at Rs12.9bn (PLe Rs10.9bn). We believe MSIL is not only beneficiery of likley trend of shift towards personal mobility...

MSIL Q4FY20 results were below our and consensus estimates at operating level. EBITDA margin declined to 8.5% vs our and consensus estimates of 9.7%. Margins were majorly impacted due to higher other expenses. Adj. PAT for the quarter stood at Rs12.9bn marginally above our estimates of Rs12.5bn. We believe lockdown and risk aversion has significantly impacted footfalls at dealerships. Being discretionary in nature, demand for 4W to be significantly impacted even post lockdown, given likely erosion of purchasing power with lay-offs, pay-cuts etc. We expect 4W industry to decline in double digit in FY21. The challenges for the industry and MSIL are likely to get...

Maruti Suzuki India Limited's (MSIL) Q4FY2020 results were lower than our as well as consensus estimates. MSIL posted lower-than-expected margins on account of subdued capacity utilisation and higher discounts. Volumes are expected to remain under pressure in the near term due to weak consumer sentiment and subdued economic activity because of COVID-19. Demand normalisation would take time as pick-up in economic activity and consumer sentiments would be gradual. Hence,...

While coronavirus outbreak continues to dampen near term PVs demand, we maintain our thesis that Maruti Suzuki (MSIL) is best positioned to tap the long term potential of the domestic PV market with (1) network strength, (2) strong rural presence and 3) product positioning (continued market dominance in the entry-level car...

Maruti's (MSIL) Q4FY20 operating performance missed estimates due to a sequential dip in ASP and negative operating leverage.

14 May 2020 MSILs 4QFY20 result is a mere reflection of the 10 days of lockdown in March, with the worst yet to come in 1HFY21. While the pain of the COVID- 19 crisis would result in a very weak FY21, we expect MSIL to come back stronger and recover faster than peers. Volume recovery in 2HFY21 is critical to the stocks performance. Maintain MSILs 4QFY20 revenues/EBITDA/PAT declined 15%/32%/28% YoY to ~INR182b/INR15.5b/INR12.9b. MSILs domestic PV market share recovered sharply by 450bp YoY (+250bp QoQ) to 54.4% in 4Q and expanded ~70bp to 51.9% in FY20. This was due to an adverse mix (lower diesel sales at 7% of volumes v/s 20% in 3Q). The gross margin improved ~60bp QoQ (+160bp YoY) owing to a lower discount by 300bp QoQ, partially offset by a weaker mix/Fx and one-off cost of INR1.

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...

Maruti Suzuki India Limited (MSIL) is engaged in the business of manufacture, purchase and sale of motor vehicles, automobile components and spare parts (automobiles). The other activities of the Company consist of facilitation of pre-owned car sales, fleet management and car financing. The Company's services include Finance, Insurance, Maruti Genuine Accessories, Maruti Genuine Parts,...