Q4FY21 Result Update - Maruti Suzuki India - ICICI Direct

Maruti Suzuki (MSIL) reported a soft Q4FY21 performance. Net sales were at Rs. 24,024 crore, up 32% YoY tracking 27.8% YoY rise in volumes to 4.92 lakh units and 4% rise in ASPs to Rs. 4.66 lakh/unit. Volumes were flattish QoQ. Q4FY21 margins slipped 120 bps QoQ to 8.3% on 135 bps gross margin contraction. Consequent PAT for Q4FY21 was at Rs. 1,166 crore, down 9.7% YoY, impacted by sharply lower other income due to MTM loss on invested surplus. The company declared a dividend of Rs. 45/share for FY21.

Valuation & Outlook

For MSIL, we build PAT CAGR of 26.8% in FY21P-23E. We retain our cautious stance on the company courtesy further strain on margins and lost ground in UVs - with present valuations continuing to be far above our comfort zone (trades at 29x P/E on FY23E). We continue to await decisive actions from MSIL on the EV front, retain REDUCE and value it at Rs. 6,080 i.e. 27x P/E (1x PEG) on FY23E EPS of ₹ 225/share (earlier target price Rs. 7,000).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_MarutiSuzuki_Q4FY21.pdf

Shares of MARUTI SUZUKI INDIA LTD. was last trading in BSE at Rs.6558.2 as compared to the previous close of Rs. 6640.6. The total number of shares traded during the day was 83804 in over 10661 trades.

The stock hit an intraday high of Rs. 6705 and intraday low of 6540. The net turnover during the day was Rs. 553127647.

Source : Equity Bulls

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