NSEI:MARUTI

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential and pays a dividend.

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: MARUTI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.6%

MARUTI

-1.1%

IN Auto

-0.6%

IN Market


1 Year Return

-7.3%

MARUTI

-3.9%

IN Auto

0.9%

IN Market

Return vs Industry: MARUTI underperformed the Indian Auto industry which returned -3.9% over the past year.

Return vs Market: MARUTI underperformed the Indian Market which returned 0.9% over the past year.


Shareholder returns

MARUTIIndustryMarket
7 Day4.6%-1.1%-0.6%
30 Day10.2%2.6%4.0%
90 Day15.7%4.7%5.7%
1 Year-6.5%-7.3%-2.4%-3.9%2.6%0.9%
3 Year-10.0%-12.8%-26.0%-28.6%-2.8%-7.4%
5 Year67.6%59.7%11.5%5.7%39.9%29.5%

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?

53.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MARUTI (₹7158.4) is trading above our estimate of fair value (₹2482.36)

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


Price To Earnings Ratio

PE vs Industry: MARUTI is poor value based on its PE Ratio (53.5x) compared to the IN Auto industry average (28.7x).

PE vs Market: MARUTI is poor value based on its PE Ratio (53.5x) compared to the Indian market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: MARUTI is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: MARUTI is overvalued based on its PB Ratio (4.4x) compared to the IN Auto industry average (2.6x).


Next Steps

Future Growth

How is Maruti Suzuki India forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

28.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MARUTI's forecast earnings growth (28.4% per year) is above the savings rate (7.2%).

Earnings vs Market: MARUTI's earnings (28.4% per year) are forecast to grow faster than the Indian market (25.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MARUTI's revenue (14.2% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: MARUTI's revenue (14.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MARUTI's Return on Equity is forecast to be low in 3 years time (12.7%).


Next Steps

  • Explore growth companies in the Automobiles industry.

Past Performance

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

-4.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MARUTI has high quality earnings.

Growing Profit Margin: MARUTI's current net profit margins (6.7%) are lower than last year (8.4%).


Past Earnings Growth Analysis

Earnings Trend: MARUTI's earnings have declined by 4.5% per year over the past 5 years.

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

Earnings vs Industry: MARUTI had negative earnings growth (-42.4%) over the past year, making it difficult to compare to the Auto industry average (-35.2%).


Return on Equity

High ROE: MARUTI's Return on Equity (8.2%) is considered low.


Next Steps

Financial Health

How is Maruti Suzuki India's financial position?


Financial Position Analysis

Short Term Liabilities: MARUTI's short term assets (₹84.4B) do not cover its short term liabilities (₹113.1B).

Long Term Liabilities: MARUTI's short term assets (₹84.4B) exceed its long term liabilities (₹28.9B).


Debt to Equity History and Analysis

Debt Level: MARUTI's debt to equity ratio (0.2%) is considered satisfactory.

Reducing Debt: MARUTI's debt to equity ratio has reduced from 2.4% to 0.2% over the past 5 years.

Debt Coverage: MARUTI's debt is well covered by operating cash flow (3129.6%).

Interest Coverage: MARUTI's interest payments on its debt are well covered by EBIT (10.4x coverage).


Balance Sheet


Next Steps

Dividend

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

0.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MARUTI's dividend (0.84%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: MARUTI's dividend (0.84%) is low compared to the top 25% of dividend payers in the Indian market (2.29%).


Stability and Growth of Payments

Stable Dividend: MARUTI's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.9%), MARUTI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MARUTI's dividends in 3 years are forecast to be well covered by earnings (30.4% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Kenichi Ayukawa (65 yo)

7.5yrs

Tenure

₹46,664,000

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 ($USD631.14K) is below average for companies of similar size in the Indian market ($USD1.36M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kenichi Ayukawa
MD, CEO & Executive Director7.5yrs₹46.66mno data
Ajay Seth
CFO & Member of Exec. Board (Finance6.42yrs₹46.40mno data
Toshiaki Hasuike
Senior Executive Officer of Engineering & Quality Assurance and Member of the Executive Boardno data₹100.00kno data
Kenichiro Toyofuku
Member of the Executive Board0.83yr₹10.70mno data
Sanjeev Grover
VP, Company Secretary & Compliance Officer2.58yrs₹8.34m0%
₹ 0
Rajiv Gandhi
Senior Executive Officer of Production & Member of the Executive Boardno datano datano data
C. Raman
Senior Exec. Officer of Engineeringno datano datano data
R. Uppal
Member of the Executive Board (Human Resourceno datano datano data
Randhir Kalsi
Member of Exec. Board( Mktg1.42yrsno datano data
Takahiko Hashimoto
Director of Marketing & Sales1.25yrsno datano data
H. Matsuura
Senior Executive Officer of Production & Supply Chain and Member of the Executive Boardno datano datano data
Shashank Srivastava
Head of Marketing & Sales1.5yrsno datano data

2.6yrs

Average Tenure

58yo

Average Age

Experienced Management: MARUTI's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kenichi Ayukawa
MD, CEO & Executive Director7.5yrs₹46.66mno data
Kenichiro Toyofuku
Member of the Executive Board0.83yr₹10.70mno data
Takahiko Hashimoto
Director of Marketing & Sales1.25yrsno datano data
Toshihiro Suzuki
Non-Executive Director7yrs₹600.00kno data
Osamu Suzuki
Non-Executive Director18.08yrs₹500.00kno data
Davinder Brar
Independent Director14.08yrs₹7.00mno data
Ravindra Bhargava
Non-Executive Chairman12.83yrs₹12.05mno data
Kinji Nom Saito
Non-Executive Directorno data₹500.00kno data
Hisashi Takeuchi
Non-Executive Director1.25yrs₹300.00kno data
Rajinder Singh
Independent Director7.75yrs₹4.75mno data
Maheswar Sahu
Independent Director0.42yrno datano data
Lira Goswami
Independent Director1.17yrs₹2.40mno data

7.0yrs

Average Tenure

63.5yo

Average Age

Experienced Board: MARUTI's board of directors are considered experienced (7 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: MARUTI
  • Exchange: NSEI
  • Founded: 1981
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Market Cap: ₹2.131t
  • 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 p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 12:44
End of Day Share Price2020/10/27 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.