Motilal Oswal's research report on Maruti Suzuki
Maruti Suzuki (MSIL) reported a weak performance in 1QFY22, weighed by the impact of the lockdowns on volumes as well as commodity cost inflation. While commodity inflation would persist in 2Q, there are drivers in place for sustained volume and margin recovery from 2HFY22E. We lower our FY22E/FY23E EPS by 13%/3%, factoring in further cost inflation in 2Q, higher staff costs, and lower other income. Maintain Buy, with TP of INR8,200/share (27x Mar’23E consol. EPS).
Outlook
The stock trades at 38.1x/23.5x FY22E/FY23E consolidated EPS. Maintain Buy, with TP of INR8,200/share (27x Mar’23E consolidated EPS).
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