Result in line; demand outlook moderates for FY25

Company
11 Mar 2024
5 Min read 
  • Maruti Suzuki's 3QFY24 results were in line with expectations.
  •  Demand outlook for FY25 is moderating, but market share gains and CNG penetration are positive factors.
  •  FY24E/25E EPS have been revised down by 3% due to weakness in the lower-end PV segment.
  •  The stock is rated as a "Buy" with a target price of INR11,850.
  •  MSIL's revenue, EBITDA, and adjusted PAT grew YoY in 3QFY24.
  •  The company plans to start production of BEVs in 2024.
  •  Inventory levels have reduced, but order backlog has also declined.
  •  CNG penetration is increasing, especially in key models like Ertiga, WagonR, and Dzire.
  •  Discounts in 3QFY24 rose YoY to 3.5% of ASP.
  •  Shareholding pattern shows Promoters, DIIs, and FIIs as major stakeholders.
  •  The company expects PV volumes in FY25 to be around 4.3 million units.
  •  The small car segment is shrinking, and the first-time buyer mix has increased to 41%.
  •  The company plans to increase its annual production capacity to 4 million units by FY31.
  •  The stock trades at a P/E ratio of 23.8x/22.8x FY24E/FY25E consolidated EPS.
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