Buy Maruti Suzuki India; target of Rs 10,034: LKP Research

LKP Research is bullish on Maruti Suzuki India has recommended buy rating on the stock with a target price of Rs 10,034 in its research report dated April 26, 2023.

Broker Research

April 27, 2023 / 14:53 IST

Buy

26 Aug, 2025 12:21

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LKP Research's research report on Maruti Suzuki India

Q4 FY23 numbers of MSIL were strong on all fronts. Top-line grew by 20% yoy and 10.3% qoq. The base quarter of last year was impacted severely by the chip shortage, which has improved somewhat now. Volumes grew by 5.3% yoy, while realisations increased by 14.7% yoy on favourable product mix tilted towards SUVs, while sequentially volumes grew by 11% while realisations improved by 0.1%. Margins in the quarter jumped by 70 bps qoq and 140 bps yoy to 10.5% on lag effect of easing of input costs seen in Q3, higher SUV volumes, favourable foreign exchange variation and higher cost reduction efforts. Steel, aluminium, noble metals like rhodium, palladium etc witnessed gradual growth in their prices, while petroleum products, rubber etc saw some correction. There was a fall in discounts both yoy and qoq. Supply chain problem remained an issue during this quarter as well, as MSIL could not supply a big number of units. There was a noticeable rise in other income due to significantly low base of last year, which assisted bottomline growth at ₹26.3 bn, a growth of 43% yoy and 11.6% qoq.y

Outlook

With ability to combat competition coming from EV shift and better growth in rural markets which were severely impacted by Covid Wave #2, company is poised for a healthy growth hereon. With multiple positive drivers in place, we remain sanguine on the stock with FY 25E target of ₹10,034. Maintain BUY.

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