Sharekhan has given Buy recommendation for Maruti Suzuki India with a target price of Rs. 10,200 in its research report issued on Jul 27, 2022
Sharekhan’s research report on Maruti Suzuki India
Maruti Suzuki India Limited (MSIL) reported lower-than-expected operational performance, led by higher commodity prices, higher sales promotion expenses and lower non-operating income. MSIL’ s market share in SUV segment is set to improve, led by new launches. Earnings are expected to post a 65.1% CAGR during FY2022-FY2024E, driven by a 20.7% revenue CAGR and a 470-bps improvement in EBITDA margin. Stock trades at P/E of 25.5x and EV/EBITDA of 19.1x on FY24E earnings estimates.
We reiterate a Buy on the stock with a revised PT of Rs. 10,200, led by buoyant demand and comfortable valuations.