Sharekhan has given Buy recommendation for Maruti Suzuki India with a target price of Rs. 8526 in its research report issued on Dec 08, 2021
Sharekhan’s research report on Maruti Suzuki India
We expect volumes to recover as supply constraints ease gradually in H2FY2022, which would improve Maruti Suzuki India Ltd’s revenue and profitability. MSIL is likely to benefit from buoyant demand for passenger vehicles, driven by rising demand in tier-2 and tier-3 cities and rural areas. MSIL is expected to regain market share in SUV segment, led by product launches in mass and premium segments. MSIL’s earnings are likely to clock a 40.1% CAGR during FY2021-FY2023E, driven by a 21% revenue CAGR and 360 bps improvement in EBITDA margins.
We retain a Buy rating on the stock with a revised PT of Rs. 8,526, led by improving supply-side issues.