BSE:532500

Stock Analysis Report

Maruti Suzuki India

Executive Summary

Maruti Suzuki India Limited manufactures, purchases, and sells motor vehicles, components, and spare parts primarily in India, rest of Asia, Europe, Africa, Oceania, and Latin America.


Snowflake Analysis

Excellent balance sheet average dividend payer.

Share Price & News

How has Maruti Suzuki India's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532500's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.1%

532500

-3.5%

IN Auto

-1.1%

IN Market


1 Year Return

-37.0%

532500

-45.3%

IN Auto

-31.7%

IN Market

Return vs Industry: 532500 exceeded the Indian Auto industry which returned -45.3% over the past year.

Return vs Market: 532500 underperformed the Indian Market which returned -31.7% over the past year.


Shareholder returns

532500IndustryMarket
7 Day6.1%-3.5%-1.1%
30 Day-29.2%-34.3%-25.1%
90 Day-35.3%-43.1%-30.6%
1 Year-36.1%-37.0%-44.1%-45.3%-30.3%-31.7%
3 Year-24.8%-27.2%-50.6%-52.4%-20.1%-24.4%
5 Year30.0%24.2%-38.4%-41.3%-11.0%-15.7%

Price Volatility Vs. Market

How volatile is Maruti Suzuki India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Maruti Suzuki India undervalued compared to its fair value and its price relative to the market?

22.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532500 (₹4549.6) is trading above our estimate of fair value (₹1251.53)

Significantly Below Fair Value: 532500 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532500 is poor value based on its PE Ratio (22.2x) compared to the Auto industry average (12.8x).

PE vs Market: 532500 is poor value based on its PE Ratio (22.2x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532500's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532500 is overvalued based on its PB Ratio (2.9x) compared to the IN Auto industry average (1.6x).


Next Steps

Future Growth

How is Maruti Suzuki India forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.9%

Forecasted Automobiles industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Maruti Suzuki India has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Maruti Suzuki India performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532500 has a large one-off gain of ₹23.8B impacting its December 31 2019 financial results.

Growing Profit Margin: 532500's current net profit margins (7.8%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: 532500's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: 532500's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 532500 had negative earnings growth (-19.8%) over the past year, making it difficult to compare to the Auto industry average (0%).


Return on Equity

High ROE: 532500's Return on Equity (13.2%) is considered low.


Next Steps

Financial Health

How is Maruti Suzuki India's financial position?


Financial Position Analysis

Short Term Liabilities: 532500's short term assets (₹95.6B) do not cover its short term liabilities (₹122.7B).

Long Term Liabilities: 532500's short term assets (₹95.6B) exceed its long term liabilities (₹27.5B).


Debt to Equity History and Analysis

Debt Level: 532500's debt to equity ratio (0.9%) is considered satisfactory.

Reducing Debt: 532500's debt to equity ratio has reduced from 4.4% to 0.9% over the past 5 years.

Debt Coverage: 532500's debt is well covered by operating cash flow (607.1%).

Interest Coverage: 532500 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Maruti Suzuki India's current dividend yield, its reliability and sustainability?

1.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 532500's dividend (1.76%) is higher than the bottom 25% of dividend payers in the Indian market (0.96%).

High Dividend: 532500's dividend (1.76%) is low compared to the top 25% of dividend payers in the Indian market (4.06%).


Stability and Growth of Payments

Stable Dividend: 532500's dividends per share have been stable in the past 10 years.

Growing Dividend: 532500's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.1%), 532500's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Kenichi Ayukawa (64yo)

7s

Tenure

₹50,218,000

Compensation

Mr. Kenichi Ayukawa has been the Managing Director and Chief Executive Officer of Maruti Suzuki India Limited since April 1, 2013. Mr. Ayukawa has been an Executive Vice President of Suzuki Motor Corporati ...


CEO Compensation Analysis

Compensation vs Market: Kenichi's total compensation ($USD660.76K) is about average for companies of similar size in the Indian market ($USD807.37K).

Compensation vs Earnings: Kenichi's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kenichi Ayukawa
MD, CEO & Director7yrs₹50.22mno data
Ajay Seth
Sr. Executive Officer of Finance5.92yrs₹31.13mno data
Sanjeev Grover
VP, Company Secretary & Compliance Officer2.08yrs₹7.67mno data
Randhir Kalsi
Member of Executive Board0.92yrno datano data
Manjaree Chowdhary
Executive Officer of Legal2.17yrsno datano data
Shashank Srivastava
Head of Marketing & Sales1yrno datano data
R. Uppal
Senior Executive Officer of Human Resourceno datano datano data
Kanwaldeep Singh
Senior Vice President of Corporate Social Responsibilityno datano datano data
Partho Banerjee
Executive Director & Executive Officer of Serviceno datano datano data
Nikhil Vyas
Head of Corporate Planningno datano datano data

2.1yrs

Average Tenure

Experienced Management: 532500's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kenichi Ayukawa
MD, CEO & Director7yrs₹50.22mno data
Kenichiro Toyofuku
Director of Corporate Planning & Whole time Director0.33yrno datano data
Takahiko Hashimoto
Director of Marketing & Sales and Whole-time Director0.75yrno datano data
Toshihiro Suzuki
Non-Executive Director6.5yrs₹550.00kno data
Osamu Suzuki
Non-Executive Director17.58yrs₹500.00kno data
Davinder Brar
Independent Director13.58yrs₹6.60mno data
Ravindra Bhargava
Non-Executive Chairman12.33yrs₹13.10mno data
Kinji Nom Saito
Non-Executive Directorno data₹500.00kno data
Hisashi Takeuchi
Non-Executive Director0.75yrno datano data
Rajinder Singh
Independent Director7.25yrs₹5.55mno data

7.3yrs

Average Tenure

64yo

Average Age

Experienced Board: 532500's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Maruti Suzuki India Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Maruti Suzuki India Limited
  • Ticker: 532500
  • Exchange: BSE
  • Founded: 1981
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Market Cap: ₹1.212t
  • Shares outstanding: 302.08m
  • Website: https://www.marutisuzuki.com

Location

  • Maruti Suzuki India Limited
  • 1 Nelson Mandela Road
  • Vasant Kunj
  • New Delhi
  • Delhi
  • 110070
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532500BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2003
MARUTINSEI (National Stock Exchange of India)YesEquity SharesININRJul 2003

Biography

Maruti Suzuki India Limited manufactures, purchases, and sells motor vehicles, components, and spare parts primarily in India, rest of Asia, Europe, Africa, Oceania, and Latin America. The company offers passenger vehicles, multi utility vehicles, and multi-purpose vehicles. It is also involved in the facilitation of pre-owned car sales, fleet management, and car financing. In addition, the company offers driving school, accessories, insurance, auto card, pre-owned car, and financing products and services. As of May 15, 2019, it had a network of 2,940 showrooms covering approximately 1,860 towns and cities. The company was formerly known as Maruti Udyog Limited and changed its name to Maruti Suzuki India Limited in September 2007. The company was founded in 1981 and is headquartered in New Delhi, India. Maruti Suzuki India Limited is a subsidiary of Suzuki Motor Corporation. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 12:35
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.