Maruti Suzuki India Ltd. share price target

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Maruti Suzuki India Limited (MSIL), a subsidiary of Suzuki Motor Corporation, is India's largest passenger car company, accounting for over 50% of the domestic car market. MSIL's Q2FY19 revenue growth at 3.1% YoY was lower than our estimates mainly due to tepid festive sales volume (down 1.5% YoY). The company managed to restrict EBITDA margin decline to 160 bps YoY in Q2FY19 on account of higher other operating income (one-off income related to Suzuki) and cost saving initiatives....

From its recent peak of USD85/bbl, the crude oil price has corrected by ~17%. Domestic PV industry - and also Maruti Suzuki(MSIL) - is highly influenced by the crude cycle, not just in terms of demand but also profitability. This was the first inflationary period under the fuel price deregulation era, which resulted in near real-time transmission of higher crude prices (up 62% from lows of Jun-17) to fuel prices (price of petrol up by 25%and of diesel by 38%), denting auto consumer sentiment

Maruti Suzuki (MSIL) reported better than expected set of numbers considering muted volume growth and higher cost pressures during the quarter. The sales growth (3.1% yoy) was largely led by better product mix and higher other operating income during the quarter. However, EBITDA and PAT de-grew by 6.7% and 9.8% on account of dismal operational performance, higher interest cost and muted growth in other income.

For 2QFY2019, Maruti Suzuki India (MSIL) posted slightly better numbers, in-line with expectation on EBITDA margin front (after adjusting for one time engineering service fee received from Suzuki of `2bn) as well as on the bottom-line front. MSIL reported ~3% yoy top-line growth to `22,433cr on the back of price hike (up ~4.5% yoy). The c..

Maintain BUY with TP Rs 8252(22x core EPS+~Rs 1255 cash/share). Expect EPS growth of 15% over FY18-21E (assuming 9% volume CAGR over FY18-21E). Maruti Suzuki (MSIL) delivered slightly better than expected performance in 2Q, EBITDA margin adjusted for one-off (Rs 2bn as engineering service fee received from Suzuki) was 14.5%, (vs est. of 14.2%). Revenue stood at Rs 224.3bn (+3% YoY, adjusted +1.9%). APAT at Rs 21bn vs est Rs 20bn. Challenges like rising fuel prices, flood impact in several states, higher interest rates and insurance cost affected the PV demand in 2Q.

MSIL Q2FY19 result was above our and consensus estimates on operating level. EBITDA margin for the quarter stood at 15.3% vs our and consensus estimates of 14.7% and 14.3% respectively. Adj. PAT for the quarter stood at Rs22.4 bn; higher than our and...

ICICI Securities Ltd | Retail Equity Research Maruti Suzuki Ltd (MSIL) reported steady performance in Q2FY19 with optical out-performance led by higher other operating income (~| 200 crore) on account of income from services from its parent. Total operating income in Q2FY19 stood at | 22,433 crore, up 3.1% YoY. ASP for the quarter came in at | 4.44 lakh/unit, flat YoY. Discounting however was aggressive at | 18,750/unit, up 23% YoY Volumes for Q2FY19 stood at 484,848 units, down 1.5% YoY. Of...

MSIL Q2FY19 numbers were in line on revenue and operating level. Miss on net profitability was due to lower other income. MSIL, continuing with its cost optimization program, improved its operating margins on QoQ basis. Competitive intensity is on a rise but MSIL is well quipped to overcome the same driven by the product launches and better economics on ownership front as compared to peers. Volume growth in the quarter was impacted due to high base quarter in FY18 and uneven monsoons in some parts of the country. We believe that MSIL will be able to repeat the...