ICICI Direct has given Hold recommendation for Maruti Suzuki with a target price of Rs. 8545 in its research report issued on May 01, 2022

ICICI Direct’s research report on Maruti Suzuki

Maruti Suzuki (MSIL) is the market leader in the domestic passenger vehicle (PV) space with market share pegged at ~43.4% with popular models being Alto, WagonR, Swift, Brezza, Baleno, Ertiga, etc, among others. Market leader in each sub-segment – cars (63.6%), UV (19.5%), vans (95.7%) • Strong b/s; ~Rs 42,000 crore cash and investment on books as of FY22.

Outlook

We retain our HOLD rating on MSIL tracking healthy demand prospects but are constrained by its conservative stance on electrification. Upgrading our margin estimates, we now value MSIL at Rs 8,545 i.e., 30x P/E on FY24E EPS of Rs 285/share (previous target Rs 7,750).

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