Maruti Suzuki India Ltd. share price target

MSIL has continued to report double digit numbers due to the strong performance of its utility vehicles. Company expects to launch one model each year, which is likely to sustain its growth momentum in the near term. MSIL has indicated that showroom footfalls have come back to normalcy, which were impacted immediately after the demonetisa..

Higher realizations leading to margin maintenance at difficult times in Q3 Maruti Suzuki India Ltd (MSIL)'s Q3 FY17 numbers came broadly in line with street expectations but above our expectations. The top-line grew by 12.3% yoy at 168bn. Despite volumes in the...

Maruti Suzuki reported strong Q2FY2017 numbers with expansion in margins. We assume double digit revenue growth in our forecast over strong demand in domestic markets and high production abilities after commissioning of Gujarat plant in Q4FY2017E. Given the new launches, lower petrol prices and its strong brand, MSIL is expected to gain m..

Maruti Suzuki India (MSIL) has delivered a strong operating performance in 2QFY17 owing to festivities-driven volume growth, lower discount and favourable operating leverage. Reported Revenue at Rs178.4bn vs. Our Estimate of Rs178.9bn MSIL's revenue rose by 28.8% yoy to Rs178.4bn (vs. our estimate of Rs178.9bn) owing to 18.4% yoy rise in volume. EBITDA rose by 35.3% yoy to Rs30.4bn (vs. our estimate of Rs26.5bn), while EBITDA margin rose by 80bps yoy to 17.0% (vs. our estimate of 14.8%) led by cost control initiatives, low discount, healthy volume growth and favourable fixed cost operating benefit. Other income rose 71.6% yoy to Rs8.13bn (62.5% higher...

(led by Brezza) have now doubled to 12.6% of sales (6% in Q2FY16) boosting realizations by 9% YoY. Higher steel prices along with a surge in the Yen (up 20% YoY) also resulted in gross margins contracting 84bps to 32.3%. However, EBITDA grew 34% to Rs30.3bn, with margin expansion of 74bps YoY to 17% (est. 14.8%) as other expenses fell 150bps YoY to 12.4% on the back of lower discounts (16,100/vehicle down 18% YoY, 4% QoQ) and higher operating leverage. PAT grew 68% to Rs24 bn(est. Rs17 bn)....

Maruti Suzukis 2QFY17 EBITDA at Rs 30bn ( 35% YoY, 37% QoQ) was 10% above our estimates. Higher volume, favourable product mix, lower ad exp contributed to highest-ever EBIDTA margins at 17% ( 87bps YoY, 218bps QoQ).

ICICI Securities Ltd | Retail Equity Research Maruti Suzuki (MSIL) reported its Q2FY17 numbers, which came in above our estimates on the operational front. Revenues at | 17,843 crore, up 29% YoY, 19.5% QoQ came in below our estimate of | 18,194 crore. The topline growth was driven by 18% YoY volume growth & 9.4% ASP growth. Revenues came in below our estimates...

grew by 28.8% yoy at 178bn. Volumes in the quarter having grown by 18.4% yoy, net realizations improved by 9.3% yoy on the back of strong sales of high margin vehicles such as Baleno and Vitarra Brezza. EBITDA margins grew to 17.3% the highest ever reported, 220 bps above 15.1% qoq, and 80 bps yoy. RM to sales ratio saw a reduction to 68.5% from 69.1% qoq...

We recently interacted with Maruti Suzuki (MSIL) management. Company is well on track to start operations at its new Gujarat plant by FY17-end. At present company's running close to 100% utilization and during peak period plant utilization is beyond 100% with help of de-bottle necking to meet festive demand. At present, company's Baleno and Vitara Brezza has a waiting period of 6-8 months, despite production ramp up.

Maruti Suzuki India (MSIL) is currently in a sweet spot as it has multiple triggers in its favour-1) positive impact of Seventh Pay Commission is expected to lead to incremental growth of ~16% YoY for the PV segment in the next two years 2) implementation of GST will result in lower ASPs of <4 million (mn) cars thus benefiting MSIL (market share of ~56% in <4 mn cars), 3) its focus on adding more content per vehicle (CNG, automatic, smart hybrid, etc) with aggressive pricing is creating a pull-strategy favouring MSIL 4) Stronger product portfolio with presence in the fast growing segments like UV, premium hatchback, etc. 5) normal monsoon in 2016 is likely to drive rural sales. Further, MSIL’s capacity expansion plans, which we believe will take the company closer to its goal of manufacturing 2 million vehicles by 2020. We raise our target to | 6150 (from | 5095 earlier) based on 22x FY18E EPS.They value at 22x FY18E EPS of | 279/share, to arrive at TP of | 6150 with BUY on MSIL.