Maruti Suzuki India - Currency the key driver, Maintain Accumulate: Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Maruti Suzuki India Ltd.

Currency the key driver, Maintain Accumulate

ACCUMULATE

CMP: Rs 1,178                                       Target Price: Rs 1,400

---

n     Strong operational performance (EBIDTA at Rs 8.1bn vs est. of Rs 7.4bn) results in PAT of Rs 5.5bn (est. Rs 4.1bn). Key highlight was higher ASP (up 4% YoY vs est. of 1% decline) 

n     Demand outlook to remain subdued for sometime given another rate increase. Expect demand to pick from festive season. Inventory in the system at ~4 to 5 weeks

n     Lower our FY12/FY13 volumes by 6.3%6.7%. Factoring in prevailing forex rates as Yen exposure is hedged only for 2QFY12

n     Lower FY12/FY13 EPS est. by 13.5%/18% to Rs 88.6/100. Lower our TP to Rs 1,400 (down 20%), retain ACCUMULATE rating. Key upside risk arises from favorable forex movement