Maruti Suzuki India Ltd. share price target

8 EBTIDA margin was slightly below our estimate, but above street's expectations. Margins impacted mainly due to higher promotional activities (up by Rs 1.46bn qoq), higherCSRactivities,andhigherdiscounts...

out positively surprised with the aggressive pricing and product offering. Baleno targets the new premium hatchback' segment, currently dominated by i20, Polo and Jazz. Our analysis suggests that this segment (which Maruti did not really cater to) has been the...

With fundamental drivers expected to fall in place over the next 618 months, demand for PVs would remain healthy. As the market leader, Maruti Suzuki would be a key beneficiary. We expect market share gains to continue in the passenger cars space for...

MSIL reported a strong 1QFY16, in line with our estimates, but 8% ahead of street. Revenuegrew18%yoy,inline.EBITDAmargin(adjusted)scaledtoalltimehighsof16.9% (weestimated16.6%,consensus15.7%),mainlyduetofavorablecurrencyandbenignraw...

MSIL delivered strong volume growth of 14% YoY to 341k units

Maruti Suzuki (MSIL) delivered yet another solid quarter with better than expected operational performance. Adj EBITDA margin expanded by 100bps QoQ to 16.9% (our est 16.2%) on the back of continued fx tailwinds, softening commodity prices and lower A&P; spends. Despite ~200bps QoQ increase in its market share to 46.8%, MSIL?s discount levels were relatively steady for the quarter.

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 sales from towns...

Maruti Suzuki's (MSIL) Q1FY16 performance was broadly in line with our estimates. Company delivered strong performance with highest ever operating margins - Adj EBIDTA margin (adjusted for one time impairment provision of 60 bps) at 16.9%, up 512 bps YoY and 100 bps QoQ. Its Revenue/EBIDTA/PAT grew 18.1%/65%/56.5% YoY, but fell 1.5%/1%/7% QoQ as against our estimate of Rs 133.4bn/22bn/13.7bn in Q1FY16.

Maruti Suzuki India ltd (MSIL), India's largest passenger vehicle manufacturer has now been emphasizing on higher penetration towards rural and semi urban areas. This strategic move is due to...

Buy on dips to Rs 3,240 - Rs 3,330 for Target of Rs3,600 in 1 quarter