BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
The Maruti Suzuki India Ltd. stock has underperformed (27% versus Nifty and 23% versus NSE Auto Index) in the last six months, impacted by market share loss and pressure on margin, despite a strong volume recovery.
We see both these concerns abating as -
- product life cycle improves, and
- price increase/discount moderation drives a recovery in profitability.
We expect approximately 30% volume growth in FY22E and positive evolution of margin.
Demand for passenger vehicles was stronger than expected once Covid-19-related lockdown restrictions were lifted due to shift in preference towards personal mobility.
This was reflected in strong demand with first-time buyer share increasing to 50% in FY21 year-to-date (from 45% in FY20) of domestic volumes.
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