NSEI:MARUTI

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

Fundamentals

Excellent balance sheet established 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: MARUTI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.5%

MARUTI

-1.0%

IN Auto

-0.3%

IN Market


1 Year Return

-4.2%

MARUTI

-5.7%

IN Auto

3.8%

IN Market

Return vs Industry: MARUTI exceeded the Indian Auto industry which returned -5.7% over the past year.

Return vs Market: MARUTI underperformed the Indian Market which returned 3.8% over the past year.


Shareholder returns

MARUTIIndustryMarket
7 Day-0.5%-1.0%-0.3%
30 Day-2.8%1.7%1.6%
90 Day14.7%18.6%7.6%
1 Year-2.9%-4.2%-4.4%-5.7%5.9%3.8%
3 Year53.2%48.3%-0.7%-3.6%35.4%28.5%
5 Year121.6%111.7%10.7%5.4%38.1%25.2%

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?

35.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MARUTI (₹7098.45) is trading above our estimate of fair value (₹3592.07)

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 (35x) compared to the Auto industry average (18.8x).

PE vs Market: MARUTI is poor value based on its PE Ratio (35x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: MARUTI is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: MARUTI is overvalued based on its PB Ratio (4.6x) 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 36 analysts?

22.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MARUTI's forecast earnings growth (22.8% per year) is above the savings rate (7.6%).

Earnings vs Market: MARUTI's earnings (22.8% per year) are forecast to grow faster than the Indian market (18.1% per year).

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

Revenue vs Market: MARUTI's revenue (11.9% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: MARUTI's revenue (11.9% 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 (16.2%).


Next Steps

Past Performance

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

8.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MARUTI has large one-off items impacting its financial results.

Growing Profit Margin: MARUTI's current net profit margins (7.9%) are lower than last year (9.4%).


Past Earnings Growth Analysis

Earnings Trend: MARUTI's earnings have grown by 8.8% 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 (-21.2%) over the past year, making it difficult to compare to the Auto industry average (6%).


Return on Equity

High ROE: MARUTI's Return on Equity (13.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Maruti Suzuki India's financial position?


Financial Position Analysis

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

Long Term Liabilities: MARUTI's short term assets (₹95.6B) exceeds its long term liabilities (27.5B)


Debt to Equity History and Analysis

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

Reducing Debt: MARUTI's debt to equity ratio has reduced from 6.1% to 0.9% over the past 5 years.

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

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


Balance Sheet

Inventory Level: MARUTI has a high level of physical assets or inventory.

Debt Coverage by Assets: MARUTI's debt is covered by short term assets (assets are 23.1x debt).


Next Steps

Dividend

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

1.13%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%0.6%markettop25%2.4%industryaverage1.4%forecastin3Years1.3%

Current dividend yield vs market & industry

Notable Dividend: MARUTI's dividend (1.13%) is higher than the bottom 25% of dividend payers in the Indian market (0.58%).

High Dividend: MARUTI's dividend (1.13%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).


Stability and Growth of Payments

Stable Dividend: MARUTI's dividends per share have been stable 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 (39.5%), 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 (33.5% payout ratio).


Next Steps

Management

What is the CEO of Maruti Suzuki India's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Kenichi Ayukawa (64yo)

6.6yrs

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 ($USD701.22K) is below average for companies of similar size in the Indian market ($USD1.14M).

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


Management Age and Tenure

1.7yrs

Average Tenure

Experienced Management: MARUTI's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

6.8yrs

Average Tenure

65.5yo

Average Age

Experienced Board: MARUTI's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

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


Ownership Breakdown

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


Management Team

  • Takahiko Hashimoto (60yo)

    Director of Marketing & Sales and Whole-time Director

    • Tenure: 0.3yrs
  • Ajay Seth

    Sr. Executive Officer of Finance

    • Tenure: 5.5yrs
    • Compensation: ₹31.13m
  • Kenichi Ayukawa (64yo)

    MD, CEO & Director

    • Tenure: 6.6yrs
    • Compensation: ₹50.22m
  • Shashank Srivastava

    Head of Marketing & Sales

    • Tenure: 0.6yrs
  • R. Uppal

    Senior Executive Officer of Human Resource

    • Tenure: 0yrs
  • Randhir Kalsi

    Member of Executive Board

    • Tenure: 0.5yrs
  • Kanwaldeep Singh

    Senior Vice President of Corporate Social Responsibility

    • Tenure: 0yrs
  • P. Bannerjee

    Executive Vice President of Service

    • Tenure: 0yrs
  • Manjaree Chowdhary

    Executive Officer of Legal

    • Tenure: 1.8yrs
  • Sanjeev Grover

    VP, Company Secretary & Compliance Officer

    • Tenure: 1.7yrs
    • Compensation: ₹7.67m

Board Members

  • Toshihiro Suzuki (60yo)

    Non-Executive Director

    • Tenure: 6.1yrs
    • Compensation: ₹550.00k
  • Osamu Suzuki (89yo)

    Non-Executive Director

    • Tenure: 17.2yrs
    • Compensation: ₹500.00k
  • Davinder Brar (67yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: ₹6.60m
  • Ravindra Bhargava (85yo)

    Non-Executive Chairman

    • Tenure: 11.9yrs
    • Compensation: ₹13.10m
  • Kinji Nom Saito (61yo)

    Non-Executive Director

    • Tenure: 0yrs
    • Compensation: ₹500.00k
  • Takahiko Hashimoto (60yo)

    Director of Marketing & Sales and Whole-time Director

    • Tenure: 0.3yrs
  • Kenichi Ayukawa (64yo)

    MD, CEO & Director

    • Tenure: 6.6yrs
    • Compensation: ₹50.22m
  • Hisashi Takeuchi (55yo)

    Non-Executive Director

    • Tenure: 0.3yrs
  • Rajinder Singh (67yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: ₹5.55m
  • Renu Karnad (67yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: ₹4.70m

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: ₹2.159t
  • 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 Analysis2019/11/18 12:47
End of Day Share Price2019/11/18 00:00
Earnings2019/09/30
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.