[Infographics] Maruti Stock | 8 Fundamental secrets of Maruti Stock

The Maruti company was established in 1981. A joint venture agreement was signed between the Government of India and Suzuki Motor Corporation (SMC), Japan in 1982.

The Company became a subsidiary of SMC in 2002. It is the market leader in the passenger vehicle segment in India. In terms of production volume and sales, the Company is now SMC’s largest subsidiary.

SMC currently holds 56.28% of its equity stake.
The principal activities of the Company are manufacturing, purchase, and sale of motor vehicles, components, and spare parts.

Major car manufacturers share in Maruti

  • Maruti Suzuki – 47.4%
  • Hyundai – 17%
  • Tata – 7.5%
  • Kia – 7.3%
  • Mahindra – 6.4%
  • Renault – 3.6%
  • Honda – 3.5%
  • Toyota – 3.0%

Market Share of Maruti Segment wise

  • Passenger cars – 62.6%
  • Utility vehicles – 24.9%
  • Vans – 89.6%

Sales of Maruti Segment wise

  • Mini – 16.8%
  • Compact – 53%
  • Midsize – 1%
  • Utility vehicles – 16.8%
  • Vans – 7.7%
  • LCV – 2.2%
  • Sales to other (OEM) – 2.3%

Maruti Sales Volume

  • Domestic – 94%
  • Exports – 6%

Maruti is the first-mover advantage in transitioning into BS-VI Models

MSIL has also successfully transitioned its entire portfolio into BS-VI models, ahead of the competition, the success of existing models, combined with expanding product portfolio and acceptance of its BS-VI models has solidified its dominant market position. For instance, in fiscal 2020, MSIL had 7 models in the list of top 10 models sold during the year.

Maruti have Strong financial risk profile

MSIL has maintained its strong financial risk profile with an estimated large net worth and liquidity of Rs 50,000 crore and Rs 37,000 crore, respectively, as of March 31, 2020. The company has a strong cash-generating ability and is almost debt-free.

Successful Launch of NEXA

NEXA is Maruti Suzuki’s pioneering initiative to create a new format of premium automotive retail which will help the company to enhance its presence in the mid-to-premium segment. It is one of the most digitally and technologically advanced buying experiences for automobile customers equipped with state-of-the-art iPads, a smartphone application for customers.

A largest company run pre-owned car brand by sales

Since foraying into India’s pre-owned car market in 2001, True Value has expanded its pan-India reach with a wide network of over 550 outlets spread across 268 cities. Making it one of the largest players in pre-owned car markets.

Widest service network

Its service network has crossed 4,000 touch-points across the country covering 1989 towns and cities. This is the widest service network offered by any automobile brand in the country.

Association with Suzuki motor corporation

MSIL has effectively leveraged its association with its parent, Suzuki Motor Corporation (SMC), which has extended product development support, shared technological expertise, and provided access to a broad product range.

High operating efficiencies engendering cost competitiveness

The Company buys over 95% of its components (by value) from suppliers with manufacturing plants in India. MSIL’s operating efficiency is among the best in the industry, supported by continuous process improvement, high indigenization, established linkages with component suppliers, and flexible manufacturing processes, resulting in effective cost control.

Maruti Stock Today

MARUTI SUZUKI IND
MARUTI.NS
₹ 7,067.80
-1.14%
Marketcap
2.14T
Volume
₹ 1,287,697.00
Shares
302,080,000
Range
₹ 7,015.55 - ₹ 7,250.00
52 Week Range
₹ 6,400.00 - ₹ 8,368.00
MARUTI SUZUKI IND
sector
Consumer Cyclical
industryAuto Manufacturers
address1, Nelson Mandela Road, New Delhi, India
countryIndia
phone91 11 4678 1000
websitehttp://www.marutisuzuki.com
MARUTI SUZUKI IND
₹ 7,067.80
Open ₹ 7,149.50
High ₹ 7,250.00
Marketcap 2.14T
Close ₹ 7,067.80
Low ₹ 7,015.55
Volume ₹ 1,287,697.00

Maruti Stock chart

Maruti Stock Index Presence

NIFTY100WEIGHTNIFTYEQWGTNIFTYMNCNIFTY100NIFTY50
NIFTY200QLTY30NT100LOW30NIFTYAUTONIFTYLGEMID250NIFTY200
NI15NIFTYCONSUMPLIQ15NSEQ30NFTQTLO30
NIFTYGR15NIFTYLOWVOLSENSEXAUTOBSE500
SNSX50BSE100BSE200LMI250ALLCAP
LRGCAPBSE100LARGECAPTMCCDGXGREENEXCARBONEX
SPBSLVIPMFGS&PDIVSTABLEESG100SHA500

Maruti Stock Infographics

Maruti Stock infographics
Maruti Stock Infographics by Kamlesk Rode, created in figma.com

Overview of Maruti stock

maruti stock infographics - overview
PE RatioSector PEPB RatioSector PBDividend YieldSector Div Yld
55.41-465.034.636.490.56%0.48%
  • Current price of Maruti share is lower then intrinsic value.
  • This stock offered good return as compared to fixed-deposit.
  • Low dividend returns in past.
  • Nestle India stock is not in ASM/GSM list

Read more about PE ratio with infographics | Read more about dividend and dividend yield with infographics

Financials of Maruti

Maruti stock infographics - financials

Income Statement Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Total Revenue82,018.5088,785.8079,112.8073,477.30
EBITDA14,272.5013,720.5010,765.408,456.90
PBIT11,512.7010,699.707,237.005,422.80
PBT11,166.9010,623.807,102.805,321.00
Net Income7,880.007,649.105,676.004,389.10
EPS260.86253.21187.9145.3
DPS80806045
Payout ratio0.310.320.320.31
EPS and DPS in ₹. Other numbers except for Payout Ratio in ₹ cr

Balance Sheet Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Current Assets7,930.0012,372.708,440.6018,544.30
Non Current Assets52,318.4051,596.0055,187.1052,738.40
Total Assets60,248.4063,968.7063,627.7071,282.70
Current Liabilities15,448.5014,160.5011,305.4016,120.50
Non Current Liabilities2,224.402,698.502,890.102,661.60
Total Liabilities17,672.9016,859.0014,195.5018,782.10
Total Equity42,575.5047,109.7049,432.2052,500.60
Total Liabilities & Shareholder’s Equity60,248.4063,968.7063,627.7071,282.70
Total Common Shares Outstanding30.2130.2130.2130.21
Shares outstanding numbers in cr. Other numbers in ₹ cr

Cash Flow Statement Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Net Change in Cash50.1113.1-165.120
Changes in Working Capital-248.2-4,458.60-4,007.603,325.20
Capital Expenditures3,911.604,872.403,437.002,370.30
Free Cash Flow7,876.301,728.5058.86,485.90
All numbers in ₹ cr

Peers of Maruti

Maruti Stock Infographics - peers
StockPE RatioPB RatioDividend Yield
Maruti Suzuki India Ltd55.414.630.56%
Tata Motors Ltd-13.913.29
Tata Motors Ltd – DVR-14.31
Mahindra and Mahindra Ltd63.272.260.85%
  • Mahindra and mahindra have highest PE ratio compared to Maruti
  • Both Tata Motors have negative PE ratio as of now.

Read more about PE ratio with infographics and Dividend infographics

Shareholders of Maruti

Maruti Stock Infographics - shareholding

Promoter Holdings Trend

Total Promoter Holding

In last 6 months, promoter holding in the company has almost stayed constant

Low Pledged Promoter Holding

Pledged promoter holdings are insignificant

Institutional Holdings Trend

Mutual Fund Holding

In the last 3 months, the mutual fund holding of the company has almost stayed constant

Foreign Institutional Holding

In last 3 months, foreign institutional holding of the company has almost stayed constant

InvestorsDec-18Mar-19Jun-19Sep-19Dec-19Mar-20Jun-20Sep-20Dec-20Mar-21Jun-21Sep-21
Promoters 56.2156.2156.2156.2156.2156.2856.2856.3756.3756.3756.3756.37
FIIs 22.6722.323.1623.4323.1821.6321.4721.8623.0923.1122.922.52
DIIs 13.4313.4113.4515.0315.6116.6917.0616.7515.6615.0815.7615.98
Public 7.698.097.185.3455.45.195.024.885.444.975.13

Dividend of Maruti stock

Maruti stock infographics - dividend
Cash DividendDividend/ShareEx Date
Final₹45.005-Aug-21
Cash DividendDividend/ShareEx Date
Final₹60.0013-Aug-20
Cash DividendDividend/ShareEx Date
Final₹80.0014-Aug-19
Cash DividendDividend/ShareEx Date
Final₹80.0014-Aug-18
Cash DividendDividend/ShareEx Date
Final₹75.0024-Aug-17

Read more about dividend and dividend yield with infographics

Strength and Limitations

Strength

  • Company is virtually debt free.
  • Company has a healthy Interest coverage ratio of 52.18.
  • The company has an efficient Cash Conversion Cycle of -25.31 days.
  • The company has a good cash flow management; CFO/PAT stands at 1.26.
  • The company has a high promoter holding of 56.37%.

Limitations

  • The company has shown a poor profit growth of -18.18% for the Past 3 years.
  • The company has shown a poor revenue growth of -4.11% for the Past 3 years.
  • Company has contingent liabilities of 11,643.70 Cr.
  • The company is trading at a high PE of 62.12.
  • The company is trading at a high EV/EBITDA of 30.37.

Expert Forecast

Maruti Stock Infographics - Expert Forecast

The stock forecast of Maruti stock for the year 2022

HIGH

Rs.10003

MEDIAN

Rs.7772

LOW

Rs.4903

Future stock price targets of Nestle India stock

Target of MarutiFuture Stock Price
202210000 to 10300
202516000 to 17500
203040000 to 44500
2035110000 to 120000
2040275000 to 300000

Please Note

All the views and contents mentioned in this blog are merely for educational purposes and are not recommendations or tips offered to any person(s) with respect to the purchase or sale of the stocks / futures. I do not accept any liability/loss accruing from the use of any content from this blog. All readers of this blog must rely on their own discretion and neither any analyst nor any publisher shall be responsible for the outcome.

Stock Forecast Predictions

Maruti Stock Infographics - Predictions

With the calculations on the basis of CAGR, the long-term investment in Nestle India comes very amazing numbers. Look at the table below

Prediction of MarutiFuture Investments
After 1 yearRs.91300
5 yearRs.133672
10 yearRs.215281
15 yearRs.346712
20 yearRs.558382
25 yearRs.899281

Future values are calculated using 10% CAGR (Maruti)

Read How Rs.10,000 converted into 1770 Crores Wipro case study?

Conclusion

Maruti is a very strong fundamental stock in NSE. This stock gave a high dividend per share every year. Well, know cars built by Maruti Suzuki in India. Maruti has 47.4% market share in Car manufacturing.

We highly recommend Maruti stock for future investments.

Let’s look at the ratios of Maruti

PE RatioSector PEPB RatioSector PBDividend YieldSector Div Yld
55.41-465.034.636.490.56%0.48%

Check Maruti stock on NSE

Frequently Asked Questions

Que: What is the market share of Maruti on Aug 21?

Ans: The market share of Maruti is more than 47% in Aug 2021.

Que: What are the good aspects of Maruti Suzuki?

Ans: Maruti Suzuki has more than 47% car market share in the automobile industry.
It has the highest market share of 72% in passenger vehicle manufacturing. It has more than 94% sales domestically.

Que: Is Maruti debt-free?

Ans: No Maruti company is not debt-free. As of March 2021 Maruti Suzuki India had ₹4.92b of debt, an increase of ₹1.41b, over one year.

Que: Target price of Maruti in 2022?

Ans: The target price of Maruti in 2022 is in the range of 10000 to 10300

Que: What is the target price of Maruti in 2025?

Ans: The target price of Maruti in 2025 is in the range of 16000 to 17500

Que: What is the target price of Maruti in 2030?

Ans: The target price of Maruti in 2030 is in the range of 40000 to 44500

Why Stock forecast by Kamlesh Rode?

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