Buy Maruti Suzuki India, target price Rs 11250: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Maruti Suzuki India with a target price of Rs 11250. The current market price of Maruti Suzuki India is Rs 8405.95.

Maruti Suzuki India, incorporated in the year 1981, is a Large Cap company (having a market cap of Rs 254925.36 Crore) operating in Auto sector.

Maruti Suzuki India key Products/Revenue Segments include Passenger Cars & Light Duty Utility Vehicles, Spare Parts & Components, Other Operating Revenue, Service Income, Scrap, Mould & Dies and Rental Income for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 30541.70 Crore, up 14.85 % from last quarter Total Income of Rs 26592.70 Crore and up 45.05 % from last year same quarter Total Income of Rs 21056.50 Crore. Company has reported net profit after tax of Rs 2050.00 Crore in latest quarter.

The company’s top management includes Mr.R C Bhargava, Mr.Kenichiro Toyofuku, Mr.T Suzuki, Mr.O Suzuki, Mr.Maheswar Sahu, Ms.Lira Goswami, Mr.R P Singh, Mr.D S Brar, Mr.Shigetoshi Torii, Mr.Hisashi Takeuchi, Mr.Kenichi Ayukawa, Mr.Kinji Saito. Company has Deloitte Haskins & Sells LLP as its auditors. As on 30-09-2022, the company has a total of 30 Crore shares outstanding.

Investment Rationale
The brokerage estimates FY23E volumes to grow by ~21% YoY, implying a residual growth of13%, or run-rate of ~184.7k units. The stock trades at 35.5x/22.2x FY23E/FY24E earnings.

Promoter/FII Holdings
Promoters held 56.37 per cent stake in the company as of 30-Sep-2022, while FIIs owned 21.89 per cent, DIIs 18.1 per cent.