Sharekhan has given Buy recommendation for Maruti Suzuki India with a target price of Rs. ekhan is bullish on Maruti Suzuki India has recommended buy rating on MSIL with a revised PT of Rs. 8,251 in its research report issued on Oct 27, 2021
MSIL is expected to witness a recovery in domestic demand with sales volumes sustaining growth, despite the near-term challenges of electronic component shortage. Sales enquiries remain strong with orderbook currently more than 2,00,000 units. We expect strong recovery from FY2022, driven by normalisation of economic activity. Margins are expected to improve from 7.5% in FY2021 to 11.1% in FY2023E, driven by operating leverage and cost-control measures. We remain positive on the company on account of its structural growth outlook (which remains intact), healthy balance sheet, and comfortable valuations. The stock is trading at P/E of 26.7x and EV/EBITDA of 19.5x its FY2023E estimates. We retain our Buy rating on MSIL with a revised PT of Rs. 8,251.