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Maruti Suzuki India

NSEI:MARUTI
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MARUTI
NSEI
₹1,979B
Market Cap
  1. Home
  2. IN
  3. Automobiles
Company description

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 last earnings update was 332 days ago. More info.


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MARUTI Share Price and Events
7 Day Returns
-5.6%
NSEI:MARUTI
-5%
IN Auto
-0.3%
IN Market
1 Year Returns
-25.6%
NSEI:MARUTI
-21.7%
IN Auto
3.3%
IN Market
MARUTI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Maruti Suzuki India (MARUTI) -5.6% -5.6% -13.4% -25.6% 79.2% 230.8%
IN Auto -5% -0.4% -9% -21.7% 11.4% 51.7%
IN Market -0.3% 6.1% 3.7% 3.3% 42.8% 75.4%
1 Year Return vs Industry and Market
  • MARUTI underperformed the Auto industry which returned -21.7% over the past year.
  • MARUTI underperformed the Market in India which returned 3.3% over the past year.
Price Volatility
MARUTI
Industry
5yr Volatility vs Market

Value

 Is Maruti Suzuki India undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Maruti Suzuki India to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Maruti Suzuki India.

NSEI:MARUTI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 39 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.4%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:MARUTI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Auto Unlevered Beta Simply Wall St/ S&P Global 0.56
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.563 (1 + (1- 35%) (0.09%))
0.707
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.8 * 8.6%)
14.43%

Discounted Cash Flow Calculation for NSEI:MARUTI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Maruti Suzuki India is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:MARUTI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 14.43%)
2019 59,976.92 Analyst x16 52,413.64
2020 75,711.21 Analyst x20 57,820.31
2021 90,966.69 Analyst x20 60,710.34
2022 82,000.00 Analyst x1 47,824.92
2023 109,000.00 Analyst x1 55,555.49
2024 119,230.30 Est @ 9.39% 53,106.45
2025 129,764.20 Est @ 8.83% 50,509.80
2026 140,728.55 Est @ 8.45% 47,869.96
2027 152,239.60 Est @ 8.18% 45,255.21
2028 164,404.65 Est @ 7.99% 42,708.58
Present value of next 10 years cash flows ₹513,774.68
NSEI:MARUTI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹164,404.65 × (1 + 7.55%) ÷ (14.43% – 7.55%)
₹2,570,017.42
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹2,570,017.42 ÷ (1 + 14.43%)10
₹667,631.91
NSEI:MARUTI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹513,774.68 + ₹667,631.91
₹1,181,406.59
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹1,181,406.59 / 302.08
₹3910.91
NSEI:MARUTI Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹3,910.91
Current discount Discount to share price of ₹6,522.60
= -1 x (₹6,522.60 - ₹3,910.91) / ₹3,910.91
-66.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Maruti Suzuki India is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Maruti Suzuki India's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Maruti Suzuki India's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:MARUTI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-03-31) in INR ₹260.86
NSEI:MARUTI Share Price ** NSEI (2019-03-25) in INR ₹6522.6
India Auto Industry PE Ratio Median Figure of 9 Publicly-Listed Auto Companies 18.19x
India Market PE Ratio Median Figure of 2,730 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Maruti Suzuki India.

NSEI:MARUTI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:MARUTI Share Price ÷ EPS (both in INR)

= 6522.6 ÷ 260.86

25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Maruti Suzuki India is overvalued based on earnings compared to the IN Auto industry average.
  • Maruti Suzuki India is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Maruti Suzuki India's expected growth come at a high price?
Raw Data
NSEI:MARUTI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 25x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 39 Analysts
10%per year
India Auto Industry PEG Ratio Median Figure of 7 Publicly-Listed Auto Companies 2.52x
India Market PEG Ratio Median Figure of 595 Publicly-Listed Companies 1.29x

*Line of best fit is calculated by linear regression .

NSEI:MARUTI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 25x ÷ 10%

2.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Maruti Suzuki India is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Maruti Suzuki India's assets?
Raw Data
NSEI:MARUTI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-03-31) in INR ₹1,408.88
NSEI:MARUTI Share Price * NSEI (2019-03-25) in INR ₹6522.6
India Auto Industry PB Ratio Median Figure of 12 Publicly-Listed Auto Companies 3.71x
India Market PB Ratio Median Figure of 3,621 Publicly-Listed Companies 1.11x
NSEI:MARUTI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:MARUTI Share Price ÷ Book Value per Share (both in INR)

= 6522.6 ÷ 1,408.88

4.63x

* Primary Listing of Maruti Suzuki India.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Maruti Suzuki India is overvalued based on assets compared to the IN Auto industry average.
X
Value checks
We assess Maruti Suzuki India's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto industry average (and greater than 0)? (1 check)
  5. Maruti Suzuki India has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Maruti Suzuki India expected to perform in the next 1 to 3 years based on estimates from 39 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Maruti Suzuki India expected to grow at an attractive rate?
  • Maruti Suzuki India's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Maruti Suzuki India's earnings growth is positive but not above the India market average.
  • Maruti Suzuki India's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:MARUTI Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:MARUTI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 39 Analysts 10%
NSEI:MARUTI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 39 Analysts 10.3%
India Auto Industry Earnings Growth Rate Market Cap Weighted Average 18.2%
India Auto Industry Revenue Growth Rate Market Cap Weighted Average 9.4%
India Market Earnings Growth Rate Market Cap Weighted Average 18.6%
India Market Revenue Growth Rate Market Cap Weighted Average 11.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:MARUTI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (11 months ago) See Below
Future Estimates Average of up to 39 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:MARUTI Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-03-31
2022-03-31
2021-03-31 1,083,922 134,000 103,512 35
2020-03-31 965,450 119,624 90,171 39
2019-03-31 866,821 97,067 76,453 39
NSEI:MARUTI Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-03-31 798,094 117,879 78,800
2017-03-31 680,850 102,820 75,099
2016-03-31 575,890 84,825 54,961

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Maruti Suzuki India's earnings are expected to grow by 10% yearly, however this is not considered high growth (20% yearly).
  • Maruti Suzuki India's revenue is expected to grow by 10.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:MARUTI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (11 months ago) See Below
Future Estimates Average of up to 39 Analyst Estimates (S&P Global) See Below

All data from Maruti Suzuki India Company Filings, last reported 11 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:MARUTI Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-03-31
2022-03-31
2021-03-31 343.19 384.80 287.20 31.00
2020-03-31 298.94 342.40 247.10 35.00
2019-03-31 253.43 271.20 239.50 31.00
NSEI:MARUTI Past Financials Data
Date (Data in INR Millions) EPS *
2018-03-31 260.86
2017-03-31 248.61
2016-03-31 181.94

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Maruti Suzuki India is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Maruti Suzuki India's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Maruti Suzuki India has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

  • Maruti Suzuki India's last earnings update was 332 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Maruti Suzuki India's growth in the last year to its industry (Auto).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Maruti Suzuki India has delivered over 20% year on year earnings growth in the past 5 years.
  • Maruti Suzuki India's 1-year earnings growth is less than its 5-year average (4.9% vs 24.4%)
  • Maruti Suzuki India's earnings growth has not exceeded the IN Auto industry average in the past year (4.9% vs 19.5%).
Earnings and Revenue History
Maruti Suzuki India's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Maruti Suzuki India Company Filings, last reported 11 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:MARUTI Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 798,094.00 78,800.00 48,967.00
2017-03-31 680,850.00 75,099.00 37,779.00
2016-03-31 575,890.00 54,961.00 32,107.00
2015-03-31 499,050.00 38,074.00 24,571.00
2014-03-31 438,011.00 28,529.00 26,756.00
2013-03-31 437,636.00 24,692.00 23,326.00
2012-03-31 355,818.00 16,812.00 19,006.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Maruti Suzuki India has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Maruti Suzuki India used its assets less efficiently than the IN Auto industry average last year based on Return on Assets.
  • Maruti Suzuki India has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Maruti Suzuki India's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Maruti Suzuki India has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Maruti Suzuki India's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Maruti Suzuki India's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Maruti Suzuki India's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Maruti Suzuki India's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Maruti Suzuki India's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 45.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Maruti Suzuki India Company Filings, last reported 11 months ago.

NSEI:MARUTI Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 425,755.00 1,756.00 13,164.00
2017-03-31 370,905.00 5,750.00 22,166.00
2016-03-31 306,304.00 2,893.00 12,760.00
2015-03-31 243,318.00 7,252.00 33,491.00
2014-03-31 215,086.00 20,612.00 96,545.00
2013-03-31 190,384.00 16,282.00 60,652.00
2012-03-31 156,747.00 15,573.00 72,175.00
  • Maruti Suzuki India's level of debt (0.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (8.6% vs 0.4% today).
  • Debt is well covered by operating cash flow (6712.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 36.7x coverage).
X
Financial health checks
We assess Maruti Suzuki India's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Maruti Suzuki India has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.23%
Current annual income from Maruti Suzuki India dividends. Estimated to be 1.52% next year.
If you bought ₹2,000 of Maruti Suzuki India shares you are expected to receive ₹25 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Maruti Suzuki India's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.5%).
  • Maruti Suzuki India's dividend is below the markets top 25% of dividend payers in India (1.91%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:MARUTI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 39 Analyst Estimates (S&P Global) See Below
India Auto Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 1.5%
India Market Average Dividend Yield Market Cap Weighted Average of 1399 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:MARUTI Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2023-03-31
2022-03-31 160.00 1.00
2021-03-31 110.40 28.00
2020-03-31 99.28 30.00
2019-03-31 85.38 29.00
NSEI:MARUTI Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-04-27 80.000 1.016
2017-08-11 75.000 0.874
2017-04-27 75.000 1.039
2016-04-26 35.000 0.690
2015-08-10 25.000 0.604
2015-04-27 25.000 0.638
2014-08-13 12.000 0.362
2014-04-25 12.000 0.510
2013-04-26 8.000 0.504
2012-04-30 7.500 0.567
2011-09-20 7.500 0.665
2010-07-14 6.000 0.472
2010-04-26 6.000 0.457
2009-06-01 3.500 0.254
2009-04-24 3.500 0.395
2009-03-26 5.000 0.624

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Maruti Suzuki India's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).
X
Income/ dividend checks
We assess Maruti Suzuki India's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Maruti Suzuki India afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Maruti Suzuki India has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kenichi Ayukawa
COMPENSATION ₹45,288,000
AGE 63
TENURE AS CEO 5.9 years
CEO Bio

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 Corporation since July 1, 2017. He serves as Executive General Manager of India & Africa Automobile Operations at Suzuki Motor Corporation and served as its Managing Officer. He served as Senior Managing Officer of Suzuki Motor Corporation since July 1, 2017. He has been a Director of Denso India Limited since January 21, 2014. He has been a Non-Independent Non-Executive Director of Subros since July 29, 2013. He has been a Director of Maruti Suzuki India Limited since July 21, 2008. He served as an Additional Director of Asahi India Glass Ltd. since May 21, 2013. He served as a Non-Executive Director of Pak Suzuki Motor Co. Ltd. Mr. Ayukawa served as a Director of Suzuki New Zealand Limited until July 1, 2013. He is a graduate of Osaka University.

CEO Compensation
  • Kenichi's compensation has been consistent with company performance over the past year.
  • Kenichi's remuneration is lower than average for companies of similar size in India.
Management Team Tenure

Average tenure of the Maruti Suzuki India management team in years:

3
Average Tenure
  • The tenure for the Maruti Suzuki India management team is about average.
Management Team

Kenichi Ayukawa

TITLE
MD, CEO & Director
COMPENSATION
₹45M
AGE
63
TENURE
5.9 yrs

Ajay Seth

TITLE
Senior Executive Officer of Finance & CFO
COMPENSATION
₹26M
TENURE
4.8 yrs

Sanjeev Grover

TITLE
Chief GM
COMPENSATION
₹6M
TENURE
1 yrs

Kazunari Yamaguchi

TITLE
Director of Production & Whole Time Director
COMPENSATION
₹5M
AGE
55
TENURE
1.2 yrs

Manjaree Chowdhary

TITLE
General Counsel
TENURE
1.1 yrs

R. Kalsi

TITLE
Senior Executive Officer of Marketing & Sales

R. Uppal

TITLE
Senior Executive Officer of HR & IT

S. Siddiqui

TITLE
Chief Mentor
TENURE
4.8 yrs

Kanwaldeep Singh

TITLE
Senior Vice President of Corporate Planning

S. Kakkar

TITLE
Executive Officer of Supply Chain
Board of Directors Tenure

Average tenure and age of the Maruti Suzuki India board of directors in years:

11.2
Average Tenure
62.5
Average Age
  • The average tenure for the Maruti Suzuki India board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Ravindra Bhargava

TITLE
Non-Executive Chairman
COMPENSATION
₹13M
AGE
84
TENURE
11.3 yrs

Kenichi Ayukawa

TITLE
MD, CEO & Director
COMPENSATION
₹45M
AGE
63
TENURE
10.7 yrs

Kazunari Yamaguchi

TITLE
Director of Production & Whole Time Director
COMPENSATION
₹5M
AGE
55
TENURE
1.2 yrs

Davinder Brar

TITLE
Independent Director
COMPENSATION
₹7M
AGE
65
TENURE
12.5 yrs

Kinji Nom Saito

TITLE
Non-Executive Director
COMPENSATION
₹400K
AGE
60

Osamu Suzuki

TITLE
Non-Executive Director
COMPENSATION
₹400K
AGE
88
TENURE
16.5 yrs

Pallavi Shroff

TITLE
Independent Director
COMPENSATION
₹4M
AGE
62
TENURE
13.5 yrs

Toshiaki Hasuike

TITLE
Non-Executive Director
COMPENSATION
₹500K
AGE
60
TENURE
11.2 yrs

Kazuhiko Ayabe

TITLE
Non-Executive Director
COMPENSATION
₹400K
AGE
60
TENURE
3.1 yrs

Rajinder Singh

TITLE
Independent Director
COMPENSATION
₹5M
AGE
66
TENURE
6.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Maruti Suzuki India's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Maruti Suzuki India has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Worry About Maruti Suzuki India Limited's (NSE:MARUTI) CEO Pay Cheque?

Kenichi Ayukawa became the CEO of Maruti Suzuki India Limited (NSE:MARUTI) in 2013. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … At the time of writing our data says that Maruti Suzuki India Limited has a market cap of ₹2.0t, and is paying total annual CEO compensation of ₹45m.

Simply Wall St -

Does Maruti Suzuki India Limited's (NSE:MARUTI) Recent Track Record Look Strong?

Assessing Maruti Suzuki India Limited's (NSE:MARUTI) past track record of performance is a useful exercise for investors. … Below, I assess MARUTI's latest performance announced on 31 March 2018 and evaluate these figures to its historical trend and industry movements. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 24%, indicating the rate at which MARUTI is growing has slowed down

Simply Wall St -

Does Maruti Suzuki India Limited's (NSE:MARUTI) PE Ratio Warrant A Sell?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … Maruti Suzuki India Limited (NSE:MARUTI) trades with a trailing P/E of 27.9, which is higher than the industry average of 16.3. … See our latest analysis for Maruti Suzuki India

Simply Wall St -

Who Really Owns Maruti Suzuki India Limited (NSE:MARUTI)?

In this analysis, my focus will be on developing a perspective on Maruti Suzuki India Limited’s (NSE:MARUTI) latest ownership structure, a less discussed, but important factor. … The implications of these institutions’ actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment. … Check out our latest analysis for Maruti Suzuki India

Simply Wall St -

Maruti Suzuki India Limited (NSE:MARUTI): A Look At Solid Capital Returns

and want to better understand how you can grow your money by investing in Maruti Suzuki India Limited (NSE:MARUTI). … To understand Maruti Suzuki India’s capital returns we will look at a useful metric called return on capital employed. … Maruti Suzuki India's Return On Capital Employed

Simply Wall St -

Should You Care About Maruti Suzuki India Limited’s (NSE:MARUTI) Cash Levels?

If you are currently a shareholder in Maruti Suzuki India Limited (NSE:MARUTI), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … Today we will examine Maruti Suzuki India’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … Maruti Suzuki India’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure.

Simply Wall St -

Maruti Suzuki India Limited (NSE:MARUTI): Poised For Long Term Success?

In March 2018, Maruti Suzuki India Limited (NSE:MARUTI) announced its earnings update. … By 2019, we can expect Maruti Suzuki India’s bottom line to reach ₹98.10b, a jump from the current trailing-twelve-month ₹78.80b … Below is a brief commentary around Maruti Suzuki India's earnings outlook going forward, which may give you a sense of market sentiment for the company.

Simply Wall St -

Is It Too Late To Buy Maruti Suzuki India Limited (NSE:MARUTI) At Its July Price?

Maruti Suzuki India Limited (NSE:MARUTI) is considered a high-growth stock, but its last closing price of ₹9445.4 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … What can we expect from Maruti Suzuki India in the future. … Maruti Suzuki India is poised for extremely high earnings growth in the near future

Simply Wall St -

Should You Be Tempted To Sell Maruti Suzuki India Limited (NSE:MARUTI) Because Of Its PE Ratio?

and want to better understand how you can grow your money by investing in Maruti Suzuki India Limited (NSE:MARUTI). … Maruti Suzuki India Limited (NSE:MARUTI) is trading with a trailing P/E of 34.1x, which is higher than the industry average of 17.6x. … While MARUTI might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions

Simply Wall St -

Does Maruti Suzuki India Limited's (NSE:MARUTI) Recent Track Record Look Strong?

Measuring Maruti Suzuki India Limited's (NSE:MARUTI) track record of past performance is a useful exercise for investors. … Today I will assess MARUTI's recent performance announced on 31 March 2018 and weigh these figures against its long-term trend and industry movements. … Commentary On MARUTI's Past Performance

Simply Wall St -

Company Info

Description

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 and servicing activities. In addition, the company offers driving school, auto card, and car leasing services; and car insurance products. Further, it operates a network of approximately 200 outlets for pre-owned car sales under the True Value name. 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.

Details
Name: Maruti Suzuki India Limited
MARUTI
Exchange: NSEI
Founded: 1981
₹1,979,440,009,162
302,080,060
Website: http://www.marutisuzuki.com
Address: Maruti Suzuki India Limited
1, Nelson Mandela Road,
Vasant Kunj,
New Delhi,
Delhi, 110070,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI MARUTI Equity Shares National Stock Exchange of India IN INR 09. Jul 2003
BSE 532500 Equity Shares Mumbai Stock Exchange IN INR 09. Jul 2003
Number of employees
Current staff
Staff numbers
0
Maruti Suzuki India employees.
Industry
Automobile Manufacturers
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/25 12:45
End of day share price update: 2019/03/25 00:00
Last estimates confirmation: 2019/03/25
Last earnings filing: 2018/04/27
Last earnings reported: 2018/03/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.