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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