Buy Maruti Suzuki, target price Rs 15,250: JM Financial
buy call on Maruti Suzuki India with a target price of Rs 15,250. The current market price of Maruti Suzuki India is Rs 11,119.65. Maruti Suzuki India Ltd., incorporated in the year 1981, is a Large Cap company (having a market cap of Rs 349584.22 crore, operating in Auto sector.
Maruti Suzuki's key products/revenue segments include Passenger Cars & Light Duty Utility Vehicles, Spare Parts & Components, Other Operating Revenue, Service Income, Scrap, Rental Income for the year ending 31-Mar-2024.
Financials For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 38972.40 crore, up 5.79% from last quarter Total Income of Rs 36839.90 crore and up 2.82% from last year same quarter Total Income of Rs 37902.10 crore. The company has reported net profit after tax of Rs 3055.20 Crore in latest quarter.
Investment Rationale
Maruti Suzuki India, with back-to-back SUV launches has strengthened its presence in the B-segment (regained leadership position with c.26% market share).With its tech-agnostic approach (Hybrids, EVs, CNG, Flex-fuel, etc.), it is well-positioned and also hedged amidst slowing pace of electrification. MSIL?s healthy momentum in Hybrids/CNG portfolio and new launches (multiple strong hybrid models over the coming 2-3 years) is expected to drive better than industry growth. Strong ASP growth owing to this favorable shift in powertrain mix is still underappreciated by the street and is expected to drive healthy operating leverage. The stock is trading at 18x FY27E EPS
