Maruti Suzuki India Limited - Decent show; Maintain ACCUMULATE - Emkay

Reco: ACCUMULATE
CMP: Rs 1414
Target Price: Rs 1800

- Q1 operating performance beats est. by 5%; 48%YoY EBITDA growth on benefits of favorable currency and SPIL merger

- Near-term outlook remains lackluster - urban demand seeing high single digit decline; petrol-car demand remains weak and diesel sales deteriorating

- Mgmt maintains 0-5% volume growth est for FY14; we cut our volume growth est. by 5% to 2%/15% for FY14/FY15

- Maintain that MSIL is the best play on cyclical recovery – structural positives to help retain a 40% PV market share and a double-digit EBITDA margin in medium term

- Cut FY14/15 EPS est. by 10%/5%; retain ACCUMULATE with a TP of Rs 1,800 (earlier Rs 1,900)

Source : Equity Bulls

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