Maruti Suzuki India - Yen to cushion margins; recovery still to play out - Emkay

Reco: ACCUMULATE
CMP: Rs 1673
Target Price: Rs 1900

- Despite the ~30% return in the last one month, we believe that MSIL still offers more upside as the structural case of demand revival is yet to play out

- The stock reaction can be attributed to Yen depreciation and the SPIL merger providing further cushion to margin est.

- We believe that MSIL can defend a c40% PV market share and retain ~11% EBITDA margins in the medium term

- We raise our EPS estimates by ~5% and TP to Rs 1,900 (from Rs 1,700) - we recommend ACCUMULATE on the stock

Source : Equity Bulls

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