Maruti Suzuki share price: Sell Maruti Suzuki India, target price Rs 5626: ICICI Securities

ICICI Securities has sell call on India with a target price of Rs 5626. The current market price of Maruti Suzuki India is Rs 7411.25. 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 222217.64 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 30-09-2021, the company reported a Consolidated Total Income of Rs 21056.50 Crore, up 15.16 % from last quarter Total Income of Rs 18284.30 Crore and up 8.83 % from last year same quarter Total Income of Rs 19347.90 Crore. Company reported net profit after tax of Rs 460.00 Crore in latest quarter.

Investment Rationale
The near term focus points for investors remain the interplay between demand, market share (SUVs) and margins. Success of new product launches in coming periods is likely to be the key trigger for the stock. In the long term, as globally customers and OEMs are converging towards BEVs over ICE amidst rising regulatory pressures, companies that are accelerating the transition are rewarded with superior multiples. Hence, MSIL’s leader inertia against proactive pivot towards EVs remains a key risk. The brokerage introduces FY24E and prune our EPS estimates (by 20.4% / 5.9% for FY22E / FY23E). It maintains target multiple at 24x Sep’23E core EPS of Rs172 (earlier: Rs154), add cash per share of Rs1,496 to arrive at the target price of Rs5,626 (earlier: Rs5,242).

Promoter/FII Holdings
Promoters held 56.37 per cent stake in the company as of 30-Sep-2021, while FIIs owned 22.52 per cent, DIIs 15.98 per cent.