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 7150.2. 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 216441.87 Crore) operating in Auto sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 24124.20 Crore, down -1.39 % from last quarter Total Income of Rs 24465.10 Crore and up 26.38 % from last year same quarter Total Income of Rs 19087.90 Crore. Company reported net profit after tax of Rs 1167.70 Crore in latest quarter.


Investment Rationale
While MSIL has seen strong demand recovery, the sharp commodity cost inflation is expected to keep near-term performance in check. The brokerage expects recovery in 2HFY22 in both market share and margins, led by a favorable product lifecycle and mix as well as price action / cost-cutting.The brokerage lowers FY22E/FY23E EPS by 13%/3%, factoring in further cost inflation in 2Q, higher staff costs, and lower other income.

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.