Buy Maruti Suzuki, target price Rs 8500: Emkay Research

Emkay Research has a buy call on Maruti Suzuki India with a target price of Rs 8500 for a duration of 12 months. The current market price of Maruti Suzuki India is Rs 6590.7.

Maruti Suzuki India Ltd, incorporated in the year 1981, is a Large Cap company with a market cap of Rs 200475.43 Crore, operating in Auto sector.

Maruti Suzuki India's key Products/Revenue Segments include Passenger Cars & Light Duty Utility Vehicles, Spare Parts & Components, Other Operating Revenue, Scrap, Service Income, Mould & Dies and Rental Income for the year ending 31-Mar-2020.


Investment Rationale
According to Emkay Research, the company's order book is healthy at 200,000+ units and network inventory is low at below 90,000 units. Led by healthy order book, improving macros and new products, we expect volumes to reach a new peak of 2 million units in FY22 and continue uptrend to 2.2 million units in FY23.

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

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.