Brokers advise on Maruti Suzuki | Should you buy Maruti Suzuki at CMP | IndiaNotes.com
MSIL’s sales volume performance remains strong and ahead of competition. MSIL’s market share in the domestic passenger car market stands increased from share from 47.4% in FY17 to 50.9% in FY18 (April-August).
Some of the company’s new products continue to command strong waiting. High waiting period coupled with production capacity constraints provide the company an opportunity to improve its product-mix. Demand for passenger vehicle is expected to grow at healthy pace in FY18/FY19.
To improve customer experience, the company is rebranding its existing sales channel to Maruti Suzuki ARENA. Expected strong volume growth coupled with healthy EBITDA margin is expected to translate in robust earnings growth for the company.
We increase our estimates to factor in marginal increase in sales volume and positive change in product mix. We revise our target price upwards to Rs 9,061 (earlier Rs8164) and upgrade the stock to BUY.
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