Maruti Suzuki - Apr-13 volumes marginally below est at 97,302 units - Motilal Oswal

- Maruti's Apr-13 volumes de-grew by 3.1% YoY (-18.9% MoM) to 97,302 (v/s est 99,000 units).

- While domestic volumes were flat YoY at 90,523 (v/s est 88,000), exports declined by 33% YoY (-44% MoM) to 6,779 units. Management highlighted drop in export volumes as a temporary phenomena and expects to recover next month onwards.

- Dzire continues to perform strongly with 25% YoY growth to 19,446 units.

- MSIL has guided for 5-6% industry growth for FY14. Our industry interaction indicates that the company is internally targeting 10-12% growth in FY14 volumes.

- Hyundai's domestic sales have declined by 7.6% YoY (-4.3% MoM). However, exports have grown by 26% YoY (+8.7% MoM) to 24,551 units.

- On release of April sales, Hyundai's Rakesh Srivastava (SVP - Sales & Marketing) said "The exports have shown good growth on account of strong demand from non-European markets, while the domestic market continues to witness pressure...There are signs of recovery with the increase in demand for petrol cars".

- Maruti Suzuki trades at 14.6x/12.1x FY14E/15E consolidated EPS and 8.9x/7.6x CEPS. Maintain Buy.

Source : Equity Bulls

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