Maruti Suzuki - Demand Momentum Remains Strong: Motilal Oswal 
Maruti Suzuki vehicles stand lined up at the Maruti Suzuki India Ltd. showroom in New Delhi, India. (Photographer Prashanth Vishwanathan/Bloomberg)

Maruti Suzuki - Demand Momentum Remains Strong: Motilal Oswal 

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 -

  1. product life cycle improves, and
  2. 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.

Click on the attachment to read the full report:

Motilal Oswal Maruti Suzuki Company Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint 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 BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.