has come out with its second quarter (July-September) earnings estimates for the Automobiles sector. The brokerage house expects Maruti Suzuki
to report net profit at Rs 1810.2 crore, up 21.8 percent quarter-on-quarter.
Net Sales are expected to increase by 21.3 percent Q-o-Q (up 30.9 percent Y-o-Y) to Rs 17775.6 crore, according to Centrum.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 24.2 percent Q-o-Q (up 21.3 percent Y-o-Y) to Rs 2752.5 crore.
Centrum's report on Maruti Suzuki
During the quarter, overall volumes stood at 418,470 units, registering a YoY growth of 18% and QoQ growth of 20%. We expect MSIL topline to grow by 31% YoY/ 21% QoQ, on the back of strong volume growth and improving sales mix.
We expect recurring PAT of Rs18.1bn, +48% YoY/ +22% YoY. We continue to maintain Hold rating on the stock, with a TP of Rs4,850 (based on 20x FY18E EPS).
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