Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Maruti today entered the fast growing Utility Vehicle segment with the
launch of ‘Ertiga’. The company targets to create a new segment (in the
space between an entry level sedan and a multi‐utility vehicle) with this
model whose introductory price seems to be aggressive (INR589k‐730k for
petrol and INR730k‐845k for diesel variants). As per media reports, the
company targets to sell 5,000 units of Ertiga per month. (We have built in
2,500 units per month for FY13). We have a ‘BUY’ rating on the stock with
a target of INR1,350.
• As per our expectation, Eritga has been launched at a price point between D’zire
and SX4. Petrol model starts at INR589k (ex‐showroom Delhi) while diesel begins at
a price tag of INR730k.
• Petrol variants come with 1373cc engine, generating 94hp power while diesel
variant comes with 1248cc engine, generating 90hp power.
• The car’s length of 4,265mm is lower compared to 4,520mm for Xylo and 4,585mm
for Innova. It is rather a comfy 5‐seater or a cramped 7‐seater vehicle.
• Various media articles have reported that the company is eyeing sale of 5000units
per month including exports (Officially nothing was mentioned in today’s press
conference). We, however, have built in 2500 units in domestic market (5% market
share of the targeted market).
• With these sales target and investment of INR4bn, company is striving for 8x fixed asset
turnover versus average gross block/TO ratio of 6x that company achieved in FY12.
• Engine as well as the overall weight is comparable to SX4 though the pricing is
cheaper by 5%‐7%, implying lower margin. Depending on the success of model, the
company is likely to take a price hike. We expect Ertiga to drag down the EBITDA
margin by 30 bps in FY13.
• Overall, this is a good move to create a new category, targeting buyers of both
entry level sedans and MPVs.
• We have a ‘BUY’ rating on Maruti with TP of INR1,350.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Maruti today entered the fast growing Utility Vehicle segment with the
launch of ‘Ertiga’. The company targets to create a new segment (in the
space between an entry level sedan and a multi‐utility vehicle) with this
model whose introductory price seems to be aggressive (INR589k‐730k for
petrol and INR730k‐845k for diesel variants). As per media reports, the
company targets to sell 5,000 units of Ertiga per month. (We have built in
2,500 units per month for FY13). We have a ‘BUY’ rating on the stock with
a target of INR1,350.
• As per our expectation, Eritga has been launched at a price point between D’zire
and SX4. Petrol model starts at INR589k (ex‐showroom Delhi) while diesel begins at
a price tag of INR730k.
• Petrol variants come with 1373cc engine, generating 94hp power while diesel
variant comes with 1248cc engine, generating 90hp power.
• The car’s length of 4,265mm is lower compared to 4,520mm for Xylo and 4,585mm
for Innova. It is rather a comfy 5‐seater or a cramped 7‐seater vehicle.
• Various media articles have reported that the company is eyeing sale of 5000units
per month including exports (Officially nothing was mentioned in today’s press
conference). We, however, have built in 2500 units in domestic market (5% market
share of the targeted market).
• With these sales target and investment of INR4bn, company is striving for 8x fixed asset
turnover versus average gross block/TO ratio of 6x that company achieved in FY12.
• Engine as well as the overall weight is comparable to SX4 though the pricing is
cheaper by 5%‐7%, implying lower margin. Depending on the success of model, the
company is likely to take a price hike. We expect Ertiga to drag down the EBITDA
margin by 30 bps in FY13.
• Overall, this is a good move to create a new category, targeting buyers of both
entry level sedans and MPVs.
• We have a ‘BUY’ rating on Maruti with TP of INR1,350.
No comments:
Post a Comment