Time period given by analyst is one year when Maruti Suzuki India Ltd. 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 208518.31 Crore) operating in Auto sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 18284.30 Crore, down -24.21 % from last quarter Total Income of Rs 24124.20 Crore and up 236.79 % from last year same quarter Total Income of Rs 5429.00 Crore. Company reported net profit after tax of Rs 439.10 Crore in latest quarter.
Investment Rationale
The brokerage reduces FY22/23 volume growth estimates by 15%/7% but retain the FY24 forecast. Following the revision, it expects revenue/earnings CAGR of 24%/61% over FY22- 24E. It lowers Sep’22 TP to Rs8,600 (Rs9,000 earlier), based on 28x core P/E and net cash/share of Rs1,541. Its core P/E is backed by a DCF model. Key risks: delay in economic recovery; a third Covid-19 wave leading to another round of lockdowns; failure of new products; increase in competitive intensity; and adverse movement in currency/commodity prices.
Promoter/FII Holdings
Promoters held 56.4 per cent stake in the company as of June 30, 2021, while FIIs held 22.9 per cent, DIIs 15.8 per cent and public and others 5 per cent.
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