Maruti Suzuki India - March 2013 Results Preview - Motilal Oswal

- Our quarterly estimates exclude SPIL (the merged Suzuki Powertrain India), as the company would be reporting its performance without SPIL. However, our full year estimates include SPIL.

- Expect volumes to decline 5.8% YoY (+12.6% QoQ), and realizations to improve 15% YoY (+1% QoQ) on mix improvement and price increase.

- Expect margins to improve 210bp YoY (+140bp QoQ) on higher volumes, better mix, and favorable JPY.

- MSIL has guided for 5-7% growth for the industry and for itself in FY14 owing to weak demand environment.

- We cut FY14/15 EPS by 4.7%/4.0% as we lower our FY14 volume growth assumption on slower economic recovery, partly offset by favorable JPY/USD movement.

- We have cut our FY14E/FY15E EPS by 7.8%/6.4% respectively.

- The stock trades at 14x/10.8x FY14E/FY15E EPS respectively. Maintain Buy.

Source : Equity Bulls

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