Analyst Research Report Snapshot

Title:

Maruti Suzuki (MSIL) - Qtr. Update - Dtd. - January 25, 2013

Price:

$35.00

Provider:

Axis Capital Limited

Date:

25 Jan 2013

Pages:

4

Type:

AcrobatPDF

Companies referenced:

MRTI.NS

Available for Immediate Download
Summary:

MSIL’s operating performance was above estimates due to strong QoQ realization growth (4% vs. estimate of 2.6%) during the quarter. Revenue at Rs 112 bn and EBIDTA at Rs 8.9 bn were 5% above estimates as average discount on petrol cars declined 10% QoQ to Rs 18,755/unit. Margin improved 190 bps QoQ to 8.0% (in line). PAT at Rs 5bn was in line due to higher depreciation and tax rate. Our TP implies an upside of 16% from CMP of Rs 1,600. We upgrade our FY13E, FY14E, and FY15E EPS by 5%, 7%, and 5% to Rs 63.8, Rs 102.4, Rs 135.3 respectively to factor in favorable exchange rate of Yen/USD of 85.5. Maintain BUY with revised SOTP-based TP of Rs 1,858 (Rs 1,787 earlier). We value standalone business at EV/EBIDTA of 8.6 and 6.5 for FY14E and FY15E and assign Rs 40/share to Suzuki Powertrain India Ltd. Key highlights:  Lower average discount in the quarter attributable to new Alto. Expect discounts to inch up QoQ as demand for petrol cars continues to be weak  Company has hedged its Q4 yen requirements at 82-84 Yen/USD and has started hedging H1FY14 at Yen/USD of 86 and above Regards, Chirag Shah (Sr VP – Automobiles) Institutional Equity Research Axis Capital Ltd Tel: 9122 4325 1148 Ronak Sarda (Asst VP – Automobiles) Institutional Equity Research Axis Capital Ltd Tel: 9122 4325 1137

Why buy analyst research?

  • Institutional quality research
  • Available for Immediate Download
  • Detailed company or industry insight
  • Print or save
  • 24 hour customer support
Return to previous page without adding this item to your cart.
Email Customer Support.

About Analyst Research

Analyst research reports are available for immediate download after purchase. You will have unlimited access to the report for 24 hours after purchase, to download, print or save it as many times as you wish. Analyst Research provided by Reuters does not constitute investment advice, and is not endorsed by Reuters Research. This information is protected by copyright and intellectual property laws. More information on Analyst Research.