Sharekhan's research report on Maruti Suzuki India
Management bets on launches of SUVs and CNG variants to regain its market share. Company continues to strengthen its distribution network through increasing penetration. Easing constraints of electronic components, softening commodity prices and positive operating leverage likely to keep earnings growth momentum intact. Earnings are expected to post a 64.3% CAGR during FY2022-FY2024E, driven by a 21.2% revenue CAGR and a 470-bps improvement in EBITDA margin.
We reiterate our Buy rating on Maruti Suzuki India Limited (MSIL), with an unchanged PT of Rs. 10,965, factoring gains in market shares through refreshed and new launches. The stock trades at P/E of 26.8x and EV/EBITDA of 19.6x on FY2024E earnings estimates.