The IIFL Securities Report: Buy Maruti Suzuki India

On September 20, IIFL Securities issued a buy recommendation for Maruti Suzuki India, setting a target price of Rs 12,750. This marks a potential 1.6% upside from the current market price of Rs 12,552. The market has responded favorably to this call, with analysts citing the company's strong fundamentals and potential for growth in the Indian automobile sector.

About Maruti Suzuki India:

Maruti Suzuki India Limited (MSIL) is an Indian automobile manufacturer headquartered in New Delhi. It is a subsidiary of the Japanese automotive giant Suzuki Motor Corporation. MSIL is the largest car manufacturer in India, accounting for over 50% of the country's passenger car market. The company manufactures a wide range of vehicles, including hatchbacks, sedans, SUVs, and vans. MSIL is known for its affordable and fuel-efficient cars, which have made it popular with Indian consumers. The company has a strong presence in India, with over 3,000 dealerships across the country. MSIL also exports its vehicles to various countries around the world.

52 Week Price Trend:

Maruti Suzuki India (NSE: MARUTI), India's largest passenger car manufacturer, has seen its share price appreciate significantly over the past year. The stock's current market price (CMP) of Rs 12552 is notably higher than its 52-week low of Rs 8127.05. However, it remains below its 52-week high of Rs 11720. This indicates that while the stock has experienced growth, there is still room for further appreciation. Maruti Suzuki's strong performance is attributed to factors such as increased consumer demand, new product launches, and cost-cutting measures.

Stratzy's MOST Analysis:

Maruti Suzuki's strong performance across all pillars in Stratzy's MOST framework has earned it an exceptional AAA rating. The company's robust management team, positive business outlook, impeccable safety record, and favorable market trends have contributed to this high assessment. This rating indicates that Maruti poses low fundamental risks and is a reliable investment choice, reflecting its solid financial foundation and the industry's growth prospects.

Company's Fundamentals:

Maruti Suzuki India (NSE: MARUTI) is a prominent automobile manufacturer in India. It has a Stock PE of 29.58, indicating that investors are willing to pay Rs. 29.58 for every Re. 1 of the company's earnings. The PB Ratio of 5.48 suggests that Maruti Suzuki's market value is 5.48 times its book value, reflecting investors' confidence in its growth potential. However, the Dividend Yield of 0.78% indicates that the company distributes a relatively low portion of its earnings as dividends, which may be a consideration for income-oriented investors.

Fundamental and Technical information provided in this blog were last updated on 20 Sep, 2024

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