Operating profit misses estimates;
Demand outlook remains strong Maruti Suzuki India Limited (MSIL), a subsidiary of Suzuki Motor Corporation, is India’s largest passenger car company, accounting for over 50% of the domestic car market.
Valuation: The company’s strong volume CAGR of 12% will drive Sales/PAT CAGR of 17%/19% over FY17-19E. Further, MSIL’s leadership position in the domestic automotive industry, strong product pipeline and a pan India distribution network, will help in sustaining premium valuations Hence, we recommend BUY rating on the stock with a target price (TP) of Rs. 8,580 based on target multiple of 25x FY19EPS.
Investments in equity shares, debentures, etc., are not obligations of, or guaranteed by Wealth India Financial Services Pvt. Ltd., and are subject to investment risks. Click here to read our full disclaimer.