Maruti Suzuki India Limited (MSIL), a subsidiary of Suzuki Motor Corporation, is India’s largest passenger car company, accounting for over 50% of the domestic car market.
Outlook and Valuation: We have also reduced our target multiple to factor dismal festive sales and adverse forex movement. However, we remain positive on the stock given its strong product portfolio, well-entrenched distribution network and robust RoE/RoCE profile. We maintain BUY rating on the stock as recent stock price correction provides a good entry point for long-term investors. Our target price (TP) stands at Rs. 8,419 based on 22x FY21E EPS.
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