Prabhudas Lilladher's research report on Maruti Suzuki
For 4QFY21, MSIL reported lower than estimated EBITDA at Rs19.9b (PLe Rs20.7bn) while lower other income at Rs0.9b (-90% YoY, PLe Rs7.5b) dragged Adj PAT by ~10% YoY at Rs11.7b (PLe Rs15.5b). Although RM inflation and volume uncertainty to persists over 1QFY22, PV as a segment will likely emerge stronger with ease in SoPs by state governements. We believe MSIL is well placed amongst OEMs as i) it is likely beneficiary of shift towards personal mobility and CNG vehicles, ii) has new model launches and iii) holds better supply chain management. To factor in volume uncertainty, RM impact and upfront cost attached to thrid line at Gujarat, we cut FY22/23 EPS by ~6.1%/3.5%.
Outlook
However, we maintain Buy on the stock with revised price target of Rs7,619 (earlier Rs7,915) based on 27x Mar-23 EPS (unchanged).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Read More