Maruti Suzuki India Ltd. share price target

Best play on the Indian PV market post recovery Better than expected margins despite demand weakness Maruti Suzuki India Ltd (MSIL)'s Q1FY20 numbers came in line with our expectations despite volumes reflecting a negative growth of 18% yoy and 12% qoq. Margins came in at 10.4% lower by 450 bps yoy on higher inventory and demand weakness. However, they were a tad better than our expectations on better product mix, cost control and flattish average discount growth. Revenues de-grew by 14% yoy and 9.7% qoq despite higher volume decline, as they were supported by 5% and 3% growth in realisations. EBITDA plunged by 39% yoy and 10% qoq as RM...

For the quarter ended June 2019, Maruti Suzuki registered 12% fall in sales to Rs 1719.80 crore. OPM fell 450 basis points to 10.4% which saw OP fall 39% to Rs 2047.80 crore. Other income grew 208% to Rs 836.40 crore and interest cost jumped 164% to Rs 54.70 crore. As depreciation grew 28% to Rs 918.60 crore, PBT fell 34% to Rs 1910.90 crore....

In-line EBIT margin: Net realization increased 7% YoY (+4.6% QoQ) to ~INR489.8k (our estimate: ~INR475k). Net sales were down ~12% YoY (-8% QoQ) to ~INR197.2b (our estimate: ~INR191.3b) due to ~18% YoY volume decline. EBIT margin shrank 5pp YoY (-110bp QoQ) to 5.7% (our estimate: 5.9%) owing to higher depreciation, although the impact of operating deleverage was offset by lower RM cost and favorable FX. Higher other...

Maruti Suzuki India Limited's (MSIL) posted in line results for Q1FY2020. However, management has stated that recovery in domestic PV demand is unlikely due to depressed consumer sentiment and financing crunch. Moreover, cost pressures on account of regulations, operating deleverage due to muted volumes and higher discounting because of increased competition would continue to drag margins. Earnings growth is expected to remain muted over the remainder of FY2020. We have been highlighting risk of earnings downgrade in our earlier note (dated...

Maruti Suzuki's 1QFY20 results were operationally in-line with margins came Change in Estimates | Target | Reco in at 10.4%. However, higher other income led to a beat in PAT at Rs14.4bn (PLe: Rs12bn). While we expect demand headwinds to continue to impact...

Maruti's 1QFY20 results were broadly in line with our estimates, as lowerthan-expected EBIDTA margin at 10.4% (vs estimate of 11%) was offset by an increase in ASP. While MSIL's net profit fell by 27% YoY in 1QFY20, but we still retain our faith in the company, given its dealership strength and strong product portfolio. We expect reduction in interest rate, pick-up in rural volume, and festive season to revive demand from 2HFY20. The company also bring down dealer inventory to comfortable four weeks. We lower our EPS estimate by 3/4% for FY20E/21E, factoring in slower-thanexpected ramp up in volume. We forecast a 10% EPS CAGR over FY19-21E, driven by a 3% volume growth and 110bps margin expansion. Given the...

Maruti Suzuki Profits Meets Estimates, Margin Contracts For the quarter ended March 2019, Maruti Suzuki registered 1% rise in sales to Rs 21459.4 crore. OPM fell 250 basis points to 10.5% which saw OP fall 18% to Rs 2263.40 crore. Other income grew 46% to Rs 867.7 crore and interest cost fell 68% to Rs 8.80 crore. As depreciation grew 15% to Rs 810.20 crore, PBT fell 12% to Rs 2312.10 crore. Provision for tax...

We re-iterate BUY as i) management expects to sustain market share and grow inline / ahead of the market in FY20 ii) Maruti remains well positioned to benefit from the transition to BSVI given its higher share of petrol variants. MSIL's share of diesel now stands at just 23% (lower than the industry mix). The synergies from the collaboration with Toyota will be felt over the medium term. Marutis 4Q PAT at Rs.18bn (-5% YoY) was inline with street estimates. We re-iterate our BUY on the stock. The stock trades at 24/21x FY20/21E EPS. Our earnings estimates are unchanged.

aided by higher other income and lower tax: Maruti Suzuki India Limited's (MSIL) Q4FY2019 results are weaker than our as well as consensus estimates on the operating front as the company posted lower-than-expected margins. The top line at Rs. 21,459 crore was almost flat (up 1.4% y-o-y for the quarter) primarily driven by a 1% increase in realisation on account of price hikes taken by...

aided by higher other income and lower tax: Maruti Suzuki India Limited's (MSIL) Q4FY2019 results are weaker than our as well as consensus estimates on the operating front as the company posted lower-than-expected margins. The top line at Rs. 21,459 crore was almost flat (up 1.4% y-o-y for the quarter) primarily driven by a 1% increase in realisation on account of price hikes taken by...