Buy Maruti Suzuki India, target price Rs 10455: ICICI Securities

ICICI Securities has buy call on Maruti Suzuki India with a target price of Rs 10455. The current market price of Maruti Suzuki India is Rs 8766.05 .

Maruti Suzuki India, incorporated in the year 1981, is a Large Cap company (having a market cap of Rs 265159.84 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 31-12-2022, the company has reported a Consolidated Total Income of Rs 29918.40 Crore, down -2.04 % from last quarter Total Income of Rs 30541.70 Crore and up 26.87 % from last year same quarter Total Income of Rs 23581.20 Crore. Company has reported net profit after tax of Rs 2355.50 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 31-12-2022, the company has a total of 30 Crore shares outstanding.

Investment Rationale
The brokerage believes, the sub-10% EBITDAM despite favourable raw material costs, currency moves and mix, was due to lower scale. Thus, with limited scope for margin expansion, the brokerage slashes its FY24E EBITDAM to 11.5%.