Maruti Suzuki India Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Maruti Suzuki (MSIL) reported its Q4FY17 numbers, which came in above our estimates on the operational & profitability front. Net revenues at | 21768 crore, up 22% YoY, 24.1% QoQ were below our estimate of | 21935 crore. The topline growth was driven by 17.6% YoY volume growth & 3.6% YoY ASP growth. The revenue miss is...

such as the Swift and Swift Dzire (already launched), and the rest will be new models. Benign competition, wide distribution network, continuous demand from the cab aggregators, good monsoon leading to rural demand (~32%) and the positive impact of Seventh Pay Commission trickling in (government employees contributed 20% of volumes in Q2), we expect robust demand for MSIL to continue. With the Phase I of Gujarat plant having commissioned from Q4 FY17, it is expected to add 2.5 lakh units as exit capacity of FY18 which would cater to the additional pickup in demand and ease up with the waiting periods of the new launches. MSIL...

We increase our target multiple to 23xSept 19E EPS (vs 22x earlier) and upgrade TP 8,880 (earlier, 8520) Maintain BUY. Maruti Suzukis (MSIL) 2Q EBITDA at Rs 36.8bn (+21% YoY) and margin at 16.9% (est. of 15%) beat expectations on the back of better cost management, lower discounts and benefit from operating leverage. Net revenue at Rs. 217bn (+22% YoY) was driven by 18% growth in volumes and 4% increase in realisations. APAT at Rs. 24.8bn (+3.4% YoY), was impacted by lower other income (-36% YoY).

leverage. EBIT margin expanded 440bp QoQ (+30bp YoY) to 13.8% (est. of 11.9%). Lower other income and a higher tax rate restricted PAT growth to 3.3% YoY (+60% QoQ) to ~INR24.8b (est. of INR23.3b). Earnings call highlights: a) MSIL's festival season sales grew in double-digit. Inventory levels would be ~2 weeks by end-October 2017 (normal inventory of 3-4 weeks). b) Rural volumes have grown 21.5% in 1HFY18. c) Impact of commodity price inflation would reflect in 2HFY18. On a YoY basis, commodity prices are higher by 200bp (% of sales) in 2QFY18. d) With higher...

Maruti Suzuki's (MSIL) Q1FY18 EBITDA (adjusted for GST-led dealer compensation & promotions) at ~INR24.7bn (up 11.6% YoY) came 4% below estimate due to higher commodity costs.

Q1FY18 EBITDA miss (7%) was mainly due to one-off GST related issues. Margin at 13.3% (80 bps below estimates) had a 50 bps impact due to one-time compensation to dealers for GST and a 30 bps impact by way of higher discounts (at 16.6k/unit) to clear pre-GST inventory.

Maintain BUY with a TP 8478 (24x FY19E EPS). Maruti Suzuki (MSIL) delivered in line revenues (+18% YoY to 175bn) in 1Q. However, EBIDTA margin came in lower at 13.3% (-156bps YoY), led by higher discounts, input cost and compensation paid to dealers. APAT came in lower than expectations at Rs 15.6bn (+5% YoY), owing to margin contraction offset by higher other income.

MSIL's 1QFY18 earnings and margins were below the cons. estimates. Net sales were at Rs17,546cr while PAT was at Rs2,331cr. Net sales, EBITDA and PAT grew by 17.4% / 5.3% 4.4% on yoy basis and were 0.3%/-6.8%/-7.9% against the consensus estimates. While PAT has grown by 4.4% to `1,556 in the quarter, there is Rs85cr component on one-off w..

ICICI Securities Ltd | Retail Equity Research Maruti Suzuki (MSIL) reported its Q4FY17 numbers, which came in below our estimates. Revenues at | 17546 crore, up 17.4% YoY/ down 4.3% QoQ came below our estimate of | 17697 crore. The topline growth was driven by 13.2% YoY volume growth & 3.2% YoY ASP growth. The miss on revenues is attributable to lower than estimated ASPs (| 434203 against our estimate of | 439718). Volumes for Q1FY18 stood at 394571 units, up by 13.2% YoY. Of this, the domestic volumes grew by 14.3% YoY to 368431 units,...

by just 3.2% yoy. Upbeat volume performance came on the back of Ignis launch last quarter and strengthening franchise of Vitarra Brezza, Dzire and Baleno. EBITDA margins came down at 13.6%, slightly below market expectations as RM costs started firming up with RM to sales...