KR Choksey has given Accumulate recommendation for Maruti Suzuki India with a target price of Rs. 9557 in its research report issued on Jan 28, 2022

KR Choksey’s research report on Maruti Suzuki India

In Q3FY22, Maruti Suzuki reported revenue from operations of INR 2,32,533 Mn (-0.9% YoY / +13.1% QoQ). EBITDA stood at INR 15,622 Mn (-29.9% YoY /+82.4% QoQ), OPM decreased by -277 bps YoY / +255 bps QoQ to 6.7% in Q3FY22, OPM was below our expectations on account of continuous rise in raw material prices. Net Profit stood at INR 10,418 Mn (-47.8% YoY / +114% QoQ), with NPM at 4.5% (-403 bps YoY / +211 bps QoQ).


We now apply a P/E multiple of 32x to FY24E EPS of INR 299 per share (earlier 38x to FY24E EPS of INR 210), which yields a target price of INR 9,557 per share (earlier INR 8000 per share) ; implying an upside potential of 8.4% from CMP. Accordingly, we maintain our “ACCUMULATE” rating on the shares of Maruti Suzuki.

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At 16:00 hrs Maruti Suzuki India was quoting at Rs 8,516.75, down Rs 40.75, or 0.48 percent.

It has touched an intraday high of Rs 8,683.10 and an intraday low of Rs 8,441.90.

It was trading with volumes of 16,778 shares, compared to its thirty day average of 22,250 shares, a decrease of -24.59 percent.

In the previous trading session, the share closed down 0.43 percent or Rs 37.10 at Rs 8,557.50.

The share touched its 52-week high Rs 8,966.80 and 52-week low Rs 6,301.20 on 27 January, 2022 and 24 February, 2021, respectively.

Currently, it is trading 5.02 percent below its 52-week high and 35.16 percent above its 52-week low.

Market capitalisation stands at Rs 257,274.04 crore.

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