Broadly in line with our estimate, Maruti Suzuki’s Q3 standalone EBITDA grew 14% y/y to Rs44.7bn. Domestic volumes would clock a 6% CAGR over FY25-27 due to higher income levels, rebound of firsttime buyers, rural demand, launches and greater support by financiers. Exports would record a stronger 15% volume CAGR on levering Toyota’s/ Suzuki’s global network, and by portfolio expansion (eVitara). We expect healthy 7/13/15/16% volume/revenue/EBITDA/ core PAT growth over FY25-27 driven by domestic and export volume/ realisation growth and by margin expansion.
OutlookThe stock quotes at attractive P/Es of 21x/18x FY26e/27e EPS, much lower than the past (median) 28x. We maintain a Buy with a higher sum-of-parts TP of Rs14,200 (earlier Rs13,800), based on 25x FY27e core EPS (Rs500) and cash of Rs1,714/sh.
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