Sharekhan's research report on Maruti Suzuki India
For Q1FY2022, MSIL reported weak and below expectations results due to sharp drop in EBITDA margin. We expect strong volume recovery ahead, which would improve revenue and profitability. MSIL is likely to benefit from buoyant PV demand, driven by rising demand in tier-2 and tier-3 cities and rural areas. MSIL is expected to sustain its dominant market share, aided by strong product portfolio and position, brand appeal, and ability to frequently launch new models.
Earnings to post a 40.4% CAGR during FY2021-FY2023E, driven by 21.9% revenue CAGR and 350-bps improvement in EBITDA margin. We retain Buy with unchanged PT of Rs. 8,587.
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