Buy Maruti Suzuki, target price Rs 9000: Motilal Oswal

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Buy Maruti Suzuki, target price Rs 9000:  Motilal Oswal


Motilal Oswal has buy call on India with a target price of Rs 9000. The current market price of Maruti Suzuki India Ltd. is Rs 7486.45.

Maruti Suzuki India Ltd., incorporated in the year 1981, is a Large Cap company (having a market cap of Rs 229233.45 Crore) operating in Auto sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 22241.10 Crore, up 25.71 % from last quarter Sales of Rs 17691.90 Crore and up 13.15 % from last year same quarter Sales of Rs 19655.50 Crore. Company reported net profit after tax of Rs 1937.00 Crore in latest quarter.

Investment Rationale
The stock trades at 28.1x/22.8x FY22/FY23E consol. EPS. It values the stock at 27x Mar’23E consol. EPS (at a 10% discount to its 5-year avg P/E v/s 25x earlier to factor in for strong demand & stable market share).

Promoter/FII Holdings
Promoters held 56.4 per cent stake in the company as of Dec 30, 2020, while FIIs held 23.1 per cent, DIIs 15.7 per cent and public and others 4.9 per cent.





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