Maruti Suzuki Q2 Results Review - Beat On Margins On Back Of Raw Material Tailwind, Product Mix: Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Maruti Suzuki India Ltd.’s Q2 FY24 revenue were in line with our estimates. However, margins and profit after tax came in higher than estimates on account of better product mix, raw material cost tailwinds and better operating leverage. Ebitda margin came in at 12.9% higher by 230 basis points and PAT came in 23% above our estimate.Maruti Suzuki’s plan to expand its production to 4 million units and increase number of models from 17 to 28 by 2030-31 will help it to increase overall market share. This will also enable the company to achieve its export volume target of 750,000 by 2030. .Valuation and outlook: We remain positive on Maruti Suzuki and expect 5% volume compound annual growth rate over FY23-FY26E, led by new model launches and market share gains. The company is doing very well in the utility vehicle segment and had ~23.3% market share in Q2 FY24. We are building revenue/Ebitda/PAT growth of 13%/26%/28% over FY23-FY26E. We maintain 'Buy' on Maruti Suzuki and value it at 23 times September-25E earnings per share to arrive at a target price of Rs 12,341..Click on the attachment to read the full report:.Maruti Suzuki Q2 Results Review - Stellar Performance: HDFC Securities.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Maruti Suzuki Q2 Results Review - Beat On Margins On Back Of Raw Material Tailwind, Product Mix: Nirmal Bang

The management expects the growth in FY24 to be 10%.

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