MSIL has continued to report double digit numbers due to the strong performance of its utility vehicles. Company expects to launch one model each year, which is likely to sustain its growth momentum in the near term. MSIL has indicated that showroom footfalls have come back to normalcy, which were impacted immediately after the demonetisation announcement. We believe that 4QFY2017 revenue growth is likely to be better than 3QFY2017. With the Gujarat plant nearing commissioning, the company will see de-bottlenecking of capacity constraints. With the strong performance, MSIL is likely to gain further market share. At CMP, MSIL is trading at P/E of 22.8x and 18.6x its FY2017E and FY2018E earnings respectively. We value MSIL on 21x of its FY2018E EPS of Rs312 with a target price of Rs6,560 with Accumulate rating on the stock.

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