Maruti Suzuki India Ltd. share price target

9 Adjusted EBTIDA margin was 15.8% (adjusting to 40bps impact of Q3FY16 royalty reinstatement)vsourestimateof15.3%.AdjustedEbidtawas7%aboveourestimates 9 Netprofitstood7%aboveourestimatesledbyhigherEbidtaandhigherotherincome...

Background: Maruti is a subsidiary of Suzuki Motor Corp (holds a 54% stake, expected to become 56% post merger of SPIL). Pays ~6% on sales as royalty to parent.Starting in 1983, Maruti is India's largest passenger car company, which primarily sells compact hatchbacks (75% of volumes), Utility vehicles and sedans. Its key models are Alto, Wagon R, Swift and Dzire. With its early-mover advantage in the Indian market, Maruti is a dominant player in the domestic passenger car market with a ~ 45% market share. Maruti has over 1200 sales outlets in 900 cities & towns and over 3000 service outlets covering over 1408 cities & towns. Rural...

In 4QFY16, while MSIL's operating performance was above our estimate, the reported PAT came in line with our estimate. Reported EPS at Rs37.5 v/s expectation of Rs36.9 With (1) 8.1% yoy increase in ASPs (2) 15% yoy increase in export revenue (3) sharp decline in average discount per vehicle Rs4k (qoq) and (4) 170bps yoy expansion in gross margin, the company has reported better than expected EBIDTA margin in 4QFY16. However the reported Pat was in line with estimate due to 24.3% below estimated other income and 490bps higher than expected effective tax rate. MSIL reported EPS at Rs37.5...

8 Adjusted EBTIDA margin was 15.8% (adjusted for 80bps RM impact, 15bps onetime employee bonus provision, and Rs 700mn oneoff maintenance expense) still much belowourestimateof16.4%,mainlyasaveragediscountsreachedalltimehighsofRs...

Maruti Suzukis (MSIL) 3QFY16 APAT at Rs 10.2bn ( 19% YoY, -17% QoQ) came in significantly below expectations. Reported EBITDA margin at 14.4% witnessed 190bps QoQ decline, but adjusted for one-offs and lumpy expenses this stood at 16% (vs. our estimate of 16.5%).

Maruti Suzuki India Ltd (MSIL)'s Q3FY16 numbers came in well below street expectations. The top-line grew by 20% yoy at Rs148 bn. Volumes in the quarter grew by 15.6% yoy and 6% qoq to 3.74 lakh units. Net realizations improved by...

Maruti Suzuki's (MSIL) Q2FY16 performance was below our as well as street's estimates. Company delivered disappointing performance with ~ 200 bps QoQ decline (up 154 bps YoY) in EBIDTA margin at 14.4%, as against our estimate of 16.6%. Its Revenue/EBIDTA/PAT grew 19.7%/34%/27% YoY but fell (8.2)%/4.4%/17% QoQ as against our estimate of Rs 149.4bn/24.8bn/13.6bn in Q3FY16.