Maruti Suzuki India Ltd. share price target

MSIL delivered a significant beat on 4QFY15 operational performance. The company reported ~265bps QoQ improvement in EBITDA margin at 15.9%, which was well ahead of our and consensus estimates. Despite increase in interest and depreciation expenses, Adj PAT came in well ahead of estimates at Rs 12.8bn ( 60% YoY).

Maruti Suzuki's (MSIL) Q4FY15 performance came way above our as well as street's expectation, as its EBIDTA margin came in at 15.9% as against our estimate of 13.5%, while its net profit stood at Rs 12.8bn, as against our estimate of Rs 10.6bn.

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 below the...

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 below the...

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 below the...

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 below the...

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, whic h primarily sells compact hatchbacks (75% of volumes), Utility vehicles and sedans. Its key models are Alto, Wagon R, Sw if t and Dzire. With its early-mover advantage in the Indian market, Maruti is a dominant player in the domestic passenger car market w ith a ~ 45% market share. Maruti has over 1200 sales outlets in 900 cities & tow ns and over 3000 service outlets covering over 1408 cities & towns. Rural sales from tow ns below the...

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, Sw ift and Dzire. With its early-mover advantage in the Indian market, Maruti is a dominant player in the domestic passenger car market w ith a ~ 45% market share. Maruti has over 1200 sales outlets in 900 cities & towns and over 3000 servic e outlets covering over 1408 cities & towns. Rural sales from tow ns below the...

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 below the...

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 below the...