Stock Snapshot
Price Performance
Recommendation Rationale
Favorable growth outlook supported by strong demand and capacity expansion, tempered by margin pressures.
Basis of our Recommendation
Maruti Suzuki is positioned for strong growth driven by robust demand for CNG vehicles and a healthy order backlog, supported by capacity expansion and a solid product pipeline. However, the company faces margin pressures due to rising commodity costs and geopolitical uncertainties.
Why We Like This Stock
- Significant surge in CNG vehicle bookings due to rising fuel prices
- Strong demand outlook with a healthy order backlog and expected volume growth
- Increased revenue driven by a higher mix of utility vehicles and strong export performance
Things To Watch Out For
- Margin pressures due to rising raw material costs and commodity inflation
- Capacity constraints and geopolitical uncertainties impacting future guidance
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 141,858 | 152,913 | 183,316 | 207,552 | 233,712 |
| Profit Before Tax (Cr.) | 17,434 | 19,558 | 19,118 | 21,221 | 24,492 |
| PBT Margin | 12.3% | 12.8% | 10.4% | 10.2% | 10.5% |
| Net Profit (Cr.) | 13,769 | 15,688 | 14,799 | 16,473 | 19,011 |
| EPS | 437.9 | 499.0 | 470.7 | 523.9 | 604.7 |
Company Overview
Show Company Profile
Maruti Suzuki India Limited manufactures, purchases, and sells motor vehicles, components, and spare parts in India. The company offers passenger vehicles, utility vehicles, and multi-purpose vehicles. It is also involved in the facilitation of pre-owned car sales, fleet management, and car financing activities. In addition, the company offers driving school, insurance, accessories, and financing products and services. It also exports its products to South Africa, Saudi Arabia, Chile, Japan, Mexico, and internationally. The company was formerly known as Maruti Udyog Limited and changed its name to Maruti Suzuki India Limited in September 2007. Maruti Suzuki India Limited was incorporated in 1981 and is headquartered in New Delhi, India. Maruti Suzuki India Limited is a subsidiary of Suzuki Motor Corporation.