For 1QFY2019, Maruti Suzuki India (MSIL) posted strong numbers both on top-line and bottom-line fronts. MSIL reported ~28% yoy top-line growth to `22,459cr on back of strong volume growth (up ~24% yoy) and price hike (up~3% yoy). The company’s operating margins improved by robust 163bps yoy. On the bottom-line front, MSIL reported growth of ~27% yoy to `1,975cr on the back of strong operating performance.

Outlook and Valuation: We expect MSIL to report net revenue CAGR of ~16% to ~`1,08,317cr over FY2018-20E mainly due to new launches and upcoming facelift in various models. Further, on the bottom-line front, we expect CAGR of ~18% to `10,892cr over the same period on the back of better margins. Thus, we maintain our Buy recommendation on MSIL with Target Price of `10,820.

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