Buy Maruti Suzuki India, target price Rs 10800: Axis Securities
ETMarkets.com
Synopsis
Strong order book, higher share of premium SUVs, CNG vehicles in the sales mix to improve ASP in FY24/25; further improved chip supplies and stable commodity prices to drive Revenue/EBITDA/PAT CAGR of 14%/16%/16% from FY23-26E
By ETMarkets.com
Last Updated:
Axis Securities has buy call on Maruti Suzuki India with a target price of Rs 10800. The current market price of Maruti Suzuki India is Rs 9656.
Maruti Suzuki India key Products/Revenue Segments include Passenger Cars & Light Duty Utility Vehicles, Spare Parts & Components, Other Operating Revenue, Service Income, Scrap, Mould & Dies and Rental Income for the year ending 31-Mar-2022.
For the quarter ended 30-06-2023, the company has reported a Consolidated Total Income of Rs 33316.90 Crore, up 1.57 % from last quarter Total Income of Rs 32802.50 Crore and up 25.29 % from last year same quarter Total Income of Rs 26592.70 Crore. Company has reported net profit after tax of Rs 2463.00 Crore in latest quarter.
Investment Rationale
MSIL’s has completely refreshed its portfolio with the recent addition of Invicto (only vehicle with Rs 20 Lc plus price point) to Jimny and Fronx launched earlier in Q4FY23. The higher share of premium MPV/SUVs in the sales mix will drive the Revenue/EBITDA/PAT growth in FY23-26E.Strong order book, higher share of premium SUVs, CNG vehicles in the sales mix to improve ASP in FY24/25; further improved chip supplies and stable commodity prices to drive Revenue/EBITDA/PAT CAGR of 14%/16%/16%from FY23-26E
Promoter/FII Holdings
Promoters held 56.48 per cent stake in the company as of 30-Jun-2023, while FIIs owned 21.87 per cent, DIIs 18.05 per cent.
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Maruti Suzuki India, incorporated in the year 1981, is a Large Cap company (having a market cap of Rs 293864.99 Crore) operating in Auto sector. Maruti Suzuki India key Products/Revenue Segments include Passenger Cars & Light Duty Utility Vehicles, Spare Parts & Components, Other Operating Revenue, Service Income, Scrap, Mould & Dies and Rental Income for the year ending 31-Mar-2022.
For the quarter ended 30-06-2023, the company has reported a Consolidated Total Income of Rs 33316.90 Crore, up 1.57 % from last quarter Total Income of Rs 32802.50 Crore and up 25.29 % from last year same quarter Total Income of Rs 26592.70 Crore. Company has reported net profit after tax of Rs 2463.00 Crore in latest quarter.
Investment Rationale
MSIL’s has completely refreshed its portfolio with the recent addition of Invicto (only vehicle with Rs 20 Lc plus price point) to Jimny and Fronx launched earlier in Q4FY23. The higher share of premium MPV/SUVs in the sales mix will drive the Revenue/EBITDA/PAT growth in FY23-26E.Strong order book, higher share of premium SUVs, CNG vehicles in the sales mix to improve ASP in FY24/25; further improved chip supplies and stable commodity prices to drive Revenue/EBITDA/PAT CAGR of 14%/16%/16%from FY23-26E
Promoter/FII Holdings
Promoters held 56.48 per cent stake in the company as of 30-Jun-2023, while FIIs owned 21.87 per cent, DIIs 18.05 per cent.
Disclaimer: Views and recommendations given in this section are the analysts' own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.
