Maruti Suzuki India Ltd. share price target

May-17 witnessed strong auto volumes, except for MHCVs. MHCVs grappled with a situation of subdued demand, lack of clarity on GST transition and BS-4 engine component supply constraints. PVs reported weaker-than-expected volumes. Maruti (MSIL) reported 11% YoY growth, led by channel inventory filling.

Revenue grew by 8.31% to Rs. 18005.2 Cr in Q4FY17 when compared to the previous quarter. Also it rose by 20.32% when compared with Q4FY16.

ICICI Securities Ltd | Retail Equity Research Maruti Suzuki (MSIL) reported its Q4FY17 numbers, which came in line with our estimates on the profitability front. Revenues at | 18333 crore, up 20.3% YoY, 8.7% QoQ were above our estimate of | 18146 crore. Topline growth was driven by 15% YoY volume growth & 4.9% YoY ASP growth. The marginal revenue beat is attributable to higher than estimated ASPs (| 434448 vs. our estimate of | 431371) Volumes for Q4FY17 at 414439 units were up 15% YoY. Of this,...

firming up with RM to sales ratio increasing to 70.9% from 67.6% yoy and 70.2% qoq. Employee costs came down to 3.42% from 3.71% qoq and 4% yoy. Other expenses were higher at 13.3% due to Gujarat plant commissioning (one time cost of 1.18 bn) and higher...

Maruti Suzuki (MSIL) delivered in line revenue ( 20% YoY to Rs 183bn) in 4Q. EBIDTA margins came in lower at 13.9% (-129bps YoY), impacted by higher commodity prices and RM cost ( 359bps YoY). APAT came in lower than expectations at Rs 17bn ( 15% YoY), owing to margin contraction and higher-than-expected depreciation.

Maruti Suzuki's (MSIL) Q4FY17 EBITDA at ~INR25.6bn (up 10% YoY) surpassed our estimate 5% due to gross margin beat on lowerthan expected Gujarat plant startup costs.

Maruti Suzuki India: Well balanced product portfolio: Maruti has plugged gaps in its product portfolio (with SUVs/sedans/premium hatchbacks/pick-ups) owing to which it should continue outperforming the industry. Margin can remain healthy, as new models lead to tapering discounts/royalty.

Maruti's Q3FY17 EBITDA was 5% below estimates(margin at 14.8% vs. estimates of 15.5%) but that is forgivable given the tough circumstances this quarter. Discounts fell 13% YoY given the better product mix, (increased 18% QoQ; somewhat seasonal). With salaried class at 45% of sales (government empl..