Maruti Suzuki India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.
Growth
Compounded Sales Growth
10 Years:
12%
5 Years:
11%
3 Years:
26%
TTM:
17%
Compounded Profit Growth
10 Years:
18%
5 Years:
18%
3 Years:
45%
TTM:
51%
Stock Price CAGR
10 Years:
16%
5 Years:
14%
3 Years:
21%
1 Year:
22%
Return on Equity
10 Years:
13%
5 Years:
11%
3 Years:
12%
Last Year:
17%
Last Updated: Unknown
Balance Sheet
Last Updated: Unknown
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Equity Capital
151
151
151
151
151
151
151
151
151
151
157
157
Reserves
18,877
21,345
24,167
30,465
36,924
42,408
46,941
49,262
52,350
55,182
74,443
85,479
Borrowings
1,569
2,004
666
231
484
121
160
184
541
426
1,248
119
Other Liabilities
6,920
7,975
9,492
11,879
14,402
17,568
16,717
14,031
18,335
18,896
24,258
29,550
Total Liabilities
27,517
31,476
34,477
42,726
51,960
60,248
63,969
63,628
71,376
74,656
100,106
115,304
Fixed Assets
10,022
11,034
12,490
12,530
13,311
13,389
15,437
15,744
14,989
13,747
27,941
27,865
CWIP
1,966
2,640
1,890
1,007
1,252
2,132
1,607
1,415
1,497
2,936
4,143
7,735
Investments
7,421
10,527
13,298
20,676
29,151
36,123
37,504
37,488
42,945
42,035
49,184
57,296
Other Assets
8,107
7,275
6,800
8,513
8,247
8,604
9,421
8,980
11,946
15,937
18,837
22,408
Total Assets
27,517
31,476
34,477
42,726
51,960
60,248
63,969
63,628
71,376
74,656
100,106
115,304
Reserves and Borrowings Chart
Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating Activity
4,059
4,995
6,449
8,482
10,282
11,788
6,601
3,496
8,856
1,840
10,815
16,801
Cash from Investing Activity
-3,119
-4,997
-4,491
-7,230
-9,173
-8,302
-3,540
-557
-7,291
-239
-8,820
-11,865
Cash from Financing Activity
-979
-74
-2,004
-1,237
-1,129
-3,436
-2,948
-3,104
-1,545
-1,607
-1,214
-4,062
Net Cash Flow
-39
-76
-45
16
-20
50
113
-165
20
-6
780
874
Free Cash Flow
Month
Mar 2012
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Free Cash Flow
2.00
3.00
3.00
-660.00
-222.00
-474.00
-109.00
-149.00
-177.00
-536.00
-421.00
10.00
Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)
Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.
Fair Value of Maruti Suzuki India Ltd as of October 5, 2024 is: ₹12,478.39
Calculation basis:
Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.
As of October 5, 2024, Maruti Suzuki India Ltd is Overvalued by 1.01% compared to the current share price ₹12,606.00
Intrinsic Value of Maruti Suzuki India Ltd as of October 5, 2024 is: ₹14,509.07
Calculation basis:
Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.
This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.
As of October 5, 2024, Maruti Suzuki India Ltd is Undervalued by 15.10% compared to the current share price ₹12,606.00
Last 5 Year EPS CAGR: 16.27%
*Investments are subject to market risks
Strength and Weakness
Strength
Weakness
The stock has a high average ROCE of 17.00%, which is a positive sign.
The stock has a low average Working Capital Days of -27.33, which is a positive sign.
The stock has a low average Cash Conversion Cycle of -28.42, which is a positive sign.
The company has higher reserves (44,820.25 cr) compared to borrowings (646.08 cr), indicating strong financial stability.
The company has shown consistent growth in sales (73.00 cr) and profit (7.00 cr) over the years.
Stock Analysis
Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Maruti Suzuki India Ltd:
Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
ROE%: 15.75% (Industry Average ROE: 17.6%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
Stock P/E: 27 (Industry average Stock P/E: 30.5)
Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
Total Debt / Equity: 0
Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions. Stock Rating:
About the Company - Qualitative Analysis
Maruti Suzuki India Ltd. is a Public Limited Listed company incorporated on 24/02/1981 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L34103DL1981PLC011375 and registration number is 011375. Currently Company is involved in the business activities of Sale of motor vehicle parts and accessories. Company’s Total Operating Revenue is Rs. 88295.60 Cr. and Equity Capital is Rs. 151.00 Cr. for the Year ended 31/03/2022.
INDUSTRY
ADDRESS
CONTACT
Auto - Cars & Jeeps
1, Nelson Mandela Road, Vasant Kunj, New Delhi Delhi 110070
Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Maruti Suzuki India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
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