Maruti Suzuki India Ltd. share price target

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

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...