Stock Report for: Maruti Suzuki Limited.
BASICS
Ticker Symbol: MSIL Fiscal Year End: Click or Group Members:
(BSE: 532500, NSE: tap to enter a date.31st 1. ISLAVATH MANOHAR-2411476
MARUTI) March 2024 2. ANUSHKA PANDEY-2411464
3. PRAHLAD SRINIVASAN-2411468
4. VAISHNAVI-2411494
5. ANURAG KUMAR-2411497
Recommendation: BUY Price: RS.12200
Summary Description of Business: Maruti Suzuki India Limited (MSIL), a subsidiary of Suzuki
Motor Corporation, is India’s largest passenger car maker. Maruti Suzuki is credited with having
ushered in the automobile revolution in the country. The company is engaged in the business of
manufacturing and sale of passenger vehicles in India. Making a small beginning with the iconic
Maruti 800 car, Maruti Suzuki today has a vast portfolio of over 16 car models and 150 variants.
They have a product range extending from entry level small cars like Alto, to the luxury sedan
Ciaz. Other activities include facilitation of pre-owned car sales fleet management, car financing.
The Company has manufacturing facilities in Gurgaon, Manesar and an R&D facility in Rohtak.
The Company was formerly known as Maruti Udyog Limited and was incorporated as a joint
venture between the Government of India and Suzuki Motor Corporation. Suzuki Motor
Corporation presently owns equity of 56.2%.
Sector: Consumer Sub-Industry: Founded: 1981 Employees: 16259
Discretionary Automobile
Main Products/Services:
Products:-
a. Passenger Vehicles (Hatchbacks, Sedans, SUVs, MPVs, Compact SUVs)
b. Commercial Vehicles (Light Commercial Vehicles, Transport Vehicles)
c. Electric & Hybrid Vehicles
Services:
a. Financing & Insurance
b. Vehicle Maintenance, Repairs
c. Driving Schools
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Key Suppliers: Key Customers:
1. Denso Corporation – Automotive 1. Individual Customers – Personal or Family
components, electrical systems vehicles.
2. Bosch 2. Corporate & Fleet Customers
3. Motherson Sumi Systems Ltd. 3. Government & Public Sector
4. Lumax Industries 4. Ride-Sharing & Taxi Operators
5. Sundaram Clayton
6. Exide Industries
7. Bridgestone, MRF
QUANTITATIVE
Name of Peer: Tata Motors Ltd.
Co. Fiscal Year End: Click or Peer Fiscal Year End: Click or
Financials (Consolidated) tap to enter a date. tap to enter a date.
(in INR million, unless otherwise stated) 2024-Mar-31 2024-Mar-31
Annual Revenues 1,447,874 4,438,776
Total Assets 1,102,848 3,706,639
Total Liabilities 263,028 2,775,700
Total Shareholders’ Equity 839.820 930,939
Annual EPS 429.01 81.95
Trailing 12-Month (TTM) 476.42 88.13
EPS
Estimated EPS 410 55
Click or tap to enter a date. Click or tap to enter a date.
2024-Aug-05 2024-Aug-05
Market data:
Market Capitalization 3,835,970 3,379,340
Historical PE 34.78 51.39
Trailing 12M PE 26.12 10.01
Estimated PE 28.33 15.90
Price-to-Book Ratio 4.29 3.99
Other: 49%
% Buy Recommendations
Segment Revenues Most Recent Year: Click or Previous Year: Click or tap to
tap to enter a date. enter a date.
2023-24 2022-23
Segment 1: Domestic Passenger Rs. 1,023,870 (86.9%) Rs. 911,130 (85.1%)
Vehicles
Segment 2: Exports Rs. 111,090 (9.3%) Rs. 92510 (8.6%)
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Segment 3: Others Rs. 68450 (5.8%) Rs. 72440 (6.3%)
RECENT NEWS
Story 1: Click or tap to enter a date.2024-Jul-31
Maruti Suzuki has been active recently with several noble developments. They are preparing to
launch the fourth generation Maruti-Suzuki Dzire by the end of August 2024. This new model aims
to offer advanced features, improved fuel efficiency, and a refreshed design, with prices expected to
range between Rs. 7 Lakhs and Rs. 10.5 Lakhs.
Additionally, Maruti Suzuki has introduced two new SUVs, the FRONX and the JIMNY, to
strengthen their SUV lineup. The two models offer modern design, tech-loaded features as well as
rugged capabilities.
Story 2: Click or tap to enter a date.2024-Jul-14
In financial news, Maruti Suzuki announced that Suzuki Motor Corporation would increase its
stake in the company by acquiring preference shares, a move that signals deeper integration and
collaboration between the two entities. It also aligns with Maruti Suzuki’s broader strategy to
streamline its production processes by consolidating all manufacturing activities under one entity.
The acquisition aims to enhance efficiency and reduce complexities.
Story 3: Click or tap to enter a date. 2024-Jun-24
Maruti Suzuki plans to launch six new electric vehicle models by 2030-31. The Gujarat plant will
play a crucial role in manufacturing these EVs, as it is close to SMC’s battery unit. This aligns with
Maruti Suzuki’s goal to increase production capacity and meet carbon neutrality requirements
along with its commitment to sustainability and innovation.
MARKET OVERVIEW
What are the drivers of growth in your firm’s industry? List three key factors.
Increasing Urbanization is increasing the demand for personal vehicles. Subsidies and tax benefits
for EVs are encouraging adoption rapidly. Also, improved R&D w.r.t technology and safety
features has led to an increase in demand.
What is the size of the market/industry of your company? Answer in Rupees/Dollars.
According to Indian Brand Equity Foundation (IBEF), the current market size of the
automobile industry in India is US$ 122.53 billion.
At what rate is your company’s industry expected to grow in the next year/five years?
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According to Indian Brand Equity Foundation (IBEF), the normal passenger car market
is expected to reach a value of US$54.84 billion by 2027 and EV market by US$1,318
billion by 2028.
COMPETITION
Are there imminent substitutes that can reduce sales of your industry/company? Give
two/three examples.
Electric Vehicles (EVs): As the automotive industry moves toward sustainability, demand
for conventional internal combustion engine vehicles may decline due to the production of
EVs by several manufacturers.
Ride-sharing Services: Uber and Ola are two easy substitutes for owning a personal vehicle
that may lower the market for new cars.
Public Transportation: Customers may decide to use public transportation rather than
purchase a new car if infrastructure and services are improved.
Who are your company’s closest competitors? List 4/5.
• Hyundai Motor India: Known for its robust product line and significant market
presence, Hyundai competes aggressively in various segments.
• Tata Motors: A formidable rival, especially with its increasing focus on electric
vehicles and sustainable alternatives.
• Honda Cars India: Another significant player offering a range of models that
compete in the same spaces as Maruti Suzuki.
• Kia Motors: As a relatively new entrant, Kia has rapidly gained market share with
appealing designs and features that attract consumers
• Mahindra & Mahindra: Particularly in the SUV segment, Mahindra has positioned
itself strongly against Maruti Suzuki
How would you rate the degree of competition in your industry (high, medium, low) based
on the threat of new entrants and existing players? Explain your answer in 2/3 sentences
One can classify the level of competitiveness in the automobile sector as high. The
substantial capital needs and regulatory obstacles limit the threat of new competitors. But
there are a lot of established players, and they keep coming up with new ideas to take market
share. The market is saturated with numerous established players and new entrants,
including international brands and startups focusing on electric vehicles. Additionally, the
high cost of entry and the rapid pace of technological advancements contribute to a highly
competitive environment. Technology is advancing so quickly that all manufacturers,
including Maruti Suzuki, must adjust quickly to be competitive. This includes the rise in
electric vehicles.
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REFERENCES/SOURCES:
1. Annual Report
2. Moneycontrol.com
3. Trendlyne.com
4. Marketscreener.com
5. Bloomberg
6. Others
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