Buy Maruti Suzuki India, target price Rs 8200: Motilal Oswal

Motilal Oswal has buy call on Maruti Suzuki India with a target price of Rs 8200. The current market price of Maruti Suzuki India Ltd. is Rs 6850.

Time period given by analyst is one year when Maruti Suzuki India Ltd. price can reach defined target. Maruti Suzuki India Ltd., incorporated in the year 1981, is a Large Cap company (having a market cap of Rs 207510.88 Crore) operating in Auto sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 18284.30 Crore, down -24.21 % from last quarter Total Income of Rs 24124.20 Crore and up 236.79 % from last year same quarter Total Income of Rs 5429.00 Crore. Company reported net profit after tax of Rs 439.10 Crore in latest quarter.


Investment Rationale
The brokerage sees scope for further improvement in dividend payouts and a resultant rerating. The stock trades at 36.4x/22.5x FY22E/FY23E consolidated EPS. It values the company at 27x Mar’23E consolidated EPS. It maintains Buy rating, with a TP of INR8,200/share.

Promoter/FII Holdings
Promoters held 56.4 per cent stake in the company as of June 30, 2021, while FIIs held 22.9 per cent, DIIs 15.8 per cent and public and others 5 per cent.