Maruti Suzuki India Ltd. share price target

Background: Maruti is a subsidiary of Suzuki Motor. Maruti pays ~6.4% on sales as royalty to parent. 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, Baleno and Brezza. With its early-mover advantage in the Indian market, Maruti is a dominant player in the domestic passenger car market with a ~ 46.8% market share. Maruti has over 1200...

Maruti Suzuki India (MSIL) reported its Q1FY17 numbers, which were below our estimates on the topline and margin front. Revenues at | 14,927 crore, up 11.6% YoY, came in below our estimate of | 15,521 crore. Revenues came in below our estimates mainly on account of lower than estimated ASPs (1.5% QoQ growth against our estimate of 4.8%) . Reported EBITDA margins came in at 14.8%, down 146 bps YoY, marginally below our estimates of 14.9%. EBITDA margins came in lower QoQ because material cost to net sales was higher by 170 bps mainly on account of increased raw material prices & adverse foreign exchange movement.ICICI Securities Limited ascribe a multiple of 21x to its FY18E EPS of | 243 and have a BUY recommendation on the stock with a target price of | 5095.

Trendlyne has 26 reports on MARUTI updated in the last year from 8 brokers with an average target of Rs 4863.1. Brokers have a rating for MARUTI with 2 downgrades,7 price downgrades,1 upgrade,4 price upgrades in past 6 months and 11 price upgrades in past 1 Year.

Mix improvement continues, but Fx hurts margins: Volumes grew ~2% YoY (-3% QoQ), restricted by fire at its vendors plant. Realizations improved 1% QoQ (+9.3% YoY) driven by better export mix, domestic mix and lower discounts. Net sales grew ~12% YoY (-2% QoQ) to ~INR149.3b (v/s est ~INR148.4b). EBITDA grew 2% YoY (-6% QoQ) to ~INR22.2b (v/s est INR21.9b). EBITDA margins declined ~140bp YoY (-60bp QoQ) to 14.8% (v/s est 14.8%), impacted by adverse Fx. However, higher other income (IndAS led) and lower depreciation (due to increase in estimate for useful life of tools & dies) drove PAT growth to ~23% YoY to ~INR14.9b (v/s est ~INR12.3b).Motilal Oswal Maintain Buy with a target price of INR5,510.

Trendlyne has 26 reports on MARUTI updated in the last year from 8 brokers with an average target of Rs 4863.1. Brokers have a rating for MARUTI with 2 downgrades,7 price downgrades,1 upgrade,4 price upgrades in past 6 months and 11 price upgrades in past 1 Year.

Maruti Suzukis (MSIL) 4QFY16 topline at Rs 153bn ( 12% YoY) was driven by net ASP improvement to Rs 414k. Gross margin improved (250bps QoQ) with a richer product mix, lower discounts and higher fixed cost absorption with normalisation of factory stock levels. However, EBITDA margin expansion ( 100bps QoQ) to 15.4% was moderate, impacted by higher staff/other expenses.

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...

Capacity constraints may limit volume growth in FY 17 Currently the demand for passenger vehicles has been picking up but at a low rate. MSIL has posted a 5.1% domestic growth in Q4 FY16. With its recent launches of...

ICICI Securities Ltd | Retail Equity Research Maruti Suzuki India (MSIL) reported its Q4FY16 numbers, which were above our estimates on the topline and margin front. Revenues came...

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...