Result Update: Maruti Suzuki (Q3 FY15)

Maruti Suzuki (Q3 FY15) – BUY

CMP Rs3,685, Target Rs4,280, Upside 16.1%


²  Net sales surge 15.4% yoy owing to 12.4% yoy rise in volumes. Domestic volumes were higher by 10.1% yoy while export volumes jumped 43.8% yoy

²  OPM at 12.7% was in line with our expectations which represented an increase of 23bps yoy and 30bps qoq, forex had a positive impact of 50bps qoq on OPM

²  PAT at Rs8bn was lower than our estimates of Rs8.7bn owing to higher than estimated depreciation and lower other income

²  Volumes are expected to gain strength in Q4 FY15 and pick further pace in FY16, margins are expected to strengthen with higher volumes and rising localization

²  We maintain our BUY rating with a 24-month target of Rs4,280


Please find attached herewith a note on the same. click here

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