Buy Maruti Suzuki India, target price Rs 10300: JM Financial

has buy call on with a target price of Rs 10300. The current market price of Maruti Suzuki India is Rs 8750.05. Time period given by analyst is one year when . price can reach defined target.

Maruti Suzuki India Ltd., incorporated in the year 1981, is a Large Cap company (having a market cap of Rs 266467.84 Crore) operating in Auto sector.

Maruti Suzuki India Ltd. key Products/Revenue Segments include Passenger Cars & Light Duty Utility Vehicles, Mould & Dies, Other Operating Revenue, Service Income, Scrap, Rental Income for the year ending 31-Mar-2021.

Financials

For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 27191.90 Crore, up 15.31 % from last quarter Total Income of Rs 23581.20 Crore and up 12.72 % from last year same quarter Total Income of Rs 24124.20 Crore. Company reported net profit after tax of Rs 1804.20 Crore in latest quarter.

Investment Rationale
The outgoing Brezza outsold competition with a single engine option (1.5L petrol). Similarly, Baleno has outsold like-to-like competition models with 1.2L petrol engine. Basis channel check, customer response to both these fully-updated models is quite strong. Introduction of new features and safety equipment is being received well by the customers as new booking inflow remains robust. Basis media articles, Brezza may soon be introduced with a CNG option as well. Continuing on the new product introductions MSIL today unveiled the muchawaited Grand

in the mid-size SUV segment with segment first features like all-wheel drive and strong/mild hybrid systems. The brokerage expects the full launch some time during September along with the roll-out of price details. Grand Vitara addresses a key void in the MSIL’s portfolio in the mid-size SUV segment accounting for c.42% share in the B-segment. It expects three more SUV launches to follow and bolster MSIL’s presence in the B-segment. With the initial success from the first two launches (Baleno and Brezza) and the first look of Grand Vitara it maintains conviction on MSIL’s new product cycle and reiterate BUY stance. It ascribes 25x PE to arrive at Mar’23 fair value of INR 10,300.

Promoter/FII Holdings
Promoters held 56.37 per cent stake in the company as of 30-Jun-2022, while FIIs owned 21.89 per cent, DIIs 18.0 per cent.

(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.

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