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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532500 | NSE: MARUTI

Maruti Suzuki India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:48 pm

Market Cap 3,41,202 Cr.
Current Price 10,861
High / Low13,680/9,738
Stock P/E24.3
Book Value 2,835
Dividend Yield1.15 %
ROCE21.8 %
ROE16.8 %
Face Value 5.00
PEG Ratio1.49

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Maruti Suzuki India Ltd

Competitors of Maruti Suzuki India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Maruti Suzuki India Ltd 3,41,202 Cr. 10,86113,680/9,73824.3 2,8351.15 %21.8 %16.8 % 5.00
Mahindra & Mahindra Ltd 3,65,236 Cr. 2,9363,222/1,53530.8 5670.72 %13.6 %18.4 % 5.00
Industry Average353,219.00 Cr6,898.5027.551,701.000.94%17.70%17.60%5.00

All Competitor Stocks of Maruti Suzuki India Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales23,47124,03417,77620,55123,25326,74926,51229,94229,25132,06032,33837,33933,513
Expenses21,24422,04016,95819,69421,69124,32024,59727,17225,87828,70829,35332,02229,073
Operating Profit2,2281,9958198571,5622,4291,9152,7713,3733,3522,9855,3184,440
OPM %9%8%5%4%7%9%7%9%12%10%9%14%13%
Other Income1,0541635445323555141126628937911,0419521,053
Interest29332223255628313099463536
Depreciation7427427447576416486527231,2097407481,3421,302
Profit before tax2,5101,3845966101,2522,2391,3472,6793,0273,3043,2314,8924,156
Tax %20%10%20%20%17%16%23%21%21%19%22%23%23%
Net Profit1,9971,2414754871,0421,8761,0362,1122,4062,6712,5253,7863,207
EPS in Rs66.1041.0915.7216.1234.4962.1034.3069.9379.6588.4183.59125.33102.00

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales36,09044,30444,54250,80157,58968,08579,80986,06875,66070,37288,330117,571135,250
Expenses33,80739,94439,23243,90948,56557,66467,69275,01268,30564,96182,578106,542119,156
Operating Profit2,2834,3615,3106,8929,02410,42112,11811,0567,3555,4115,75211,02916,094
OPM %6%10%12%14%16%15%15%13%10%8%7%9%12%
Other Income1,0867977248171,4642,3992,1552,6643,4103,0461,8612,3073,836
Interest62198184218828934676134102127187217
Depreciation1,1621,8902,1162,5152,8222,6042,7603,0213,5283,0342,7892,8264,131
Profit before tax2,1453,0703,7344,9767,58510,12711,16710,6247,1035,3214,69710,32315,583
Tax %24%20%24%24%28%26%29%28%20%18%17%20%
Net Profit1,6812,4702,8543,8095,4977,5117,8817,6515,6784,3893,8808,21112,189
EPS in Rs58.1981.7494.44126.04181.98248.61260.86253.21187.90145.30128.43271.82399.33
Dividend Payout %13%10%13%20%19%30%31%32%32%31%47%33%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)46.94%15.55%33.46%44.32%36.64%4.93%-2.92%-25.79%-22.70%-11.60%111.62%
Change in YoY Net Profit Growth (%)0.00%-31.39%17.92%10.85%-7.68%-31.71%-7.84%-22.87%3.09%11.10%123.22%

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:11%
Compounded Profit Growth
10 Years:18%
5 Years:18%
3 Years:45%
TTM:23%
Stock Price CAGR
10 Years:12%
5 Years:9%
3 Years:11%
1 Year:4%
Return on Equity
10 Years:13%
5 Years:11%
3 Years:12%
Last Year:17%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:33 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital151151151151151151151151151151157157157
Reserves18,87721,34524,16730,46536,92442,40846,94149,26252,35055,18274,44385,47988,969
Borrowings1,5692,0046662314841211601845414261,248119158
Other Liabilities6,9207,9759,49211,87914,40217,56816,71714,03118,33518,89624,25829,55032,412
Total Liabilities27,51731,47634,47742,72651,96060,24863,96963,62871,37674,656100,106115,304121,696
Fixed Assets10,02211,03412,49012,53013,31113,38915,43715,74414,98913,74727,94127,86529,337
CWIP1,9662,6401,8901,0071,2522,1321,6071,4151,4972,9364,1437,7358,303
Investments7,42110,52713,29820,67629,15136,12337,50437,48842,94542,03549,18457,29657,820
Other Assets8,1077,2756,8008,5138,2478,6049,4218,98011,94615,93718,83722,40826,237
Total Assets27,51731,47634,47742,72651,96060,24863,96963,62871,37674,656100,106115,304121,696

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +4,0594,9956,4498,48210,28211,7886,6013,4968,8561,84010,81516,801
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-39-76-4516-2050113-16520-6780874

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow2.003.003.00-660.00-222.00-474.00-109.00-149.00-177.00-536.00-421.0010.00

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.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days131288671010781012
Inventory Days212028302521202222202319
Days Payable475757706570595173545862
Cash Conversion Cycle-14-25-20-32-33-42-29-20-44-26-25-31
Working Capital Days-7-18-26-27-33-40-29-19-47-29-27-26
ROCE %15%16%19%23%24%24%19%9%11%6%16%22%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters56.37%56.37%56.37%56.37%56.37%56.48%56.48%56.48%58.19%58.19%58.19%58.19%
FIIs23.60%22.57%21.89%21.84%21.49%21.11%21.87%21.85%20.60%19.64%18.98%17.68%
DIIs15.29%16.25%18.01%18.10%18.19%18.57%18.07%18.15%17.64%18.86%19.37%20.75%
Government0.00%0.00%0.00%0.06%0.06%0.06%0.06%0.06%0.06%0.06%0.07%0.07%
Public4.74%4.81%3.73%3.62%3.89%3.78%3.51%3.45%3.50%3.24%3.41%3.31%
No. of Shareholders4,21,9124,31,8893,95,4413,92,5514,18,2884,15,1273,78,3233,68,6083,87,7673,64,3753,89,3143,82,573

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Parag Parikh Flexi Cap Fund2,762,4795.112814.112,103,6592024-11-2031.32%
SBI Nifty 50 ETF2,390,8661.422435.552,103,6592024-11-2013.65%
ICICI Prudential Bluechip Fund2,103,6594.32142.982,103,6592024-11-200%
ICICI Prudential Balanced Advantage Fund1,948,9803.671985.412,103,6592024-11-20-7.35%
SBI S&P BSE Sensex ETF1,702,2481.651733.452,103,6592024-11-20-19.08%
Kotak Flexicap Fund - Regular Plan1,525,0003.51553.52,103,6592024-11-20-27.51%
ICICI Prudential Equity & Debt Fund1,280,1354.181304.062,103,6592024-11-20-39.15%
ICICI Prudential Multi Asset Fund1,180,6593.661202.732,103,6592024-11-20-43.88%
ICICI Prudential Flexicap Fund1,078,74281098.92,103,6592024-11-20-48.72%
HDFC Flexi Cap Fund - Regular Plan950,0002.03967.762,103,6592024-11-20-54.84%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)429.01271.82128.43145.30187.95
Diluted EPS (Rs.)429.01271.82128.43145.30187.95
Cash EPS (Rs.)588.10359.58215.45240.21300.91
Book Value[Excl.RevalReserv]/Share (Rs.)2723.792046.071832.231738.431636.83
Book Value[Incl.RevalReserv]/Share (Rs.)2723.792046.071832.231738.431636.83
Revenue From Operations / Share (Rs.)4512.033893.092924.832330.202505.30
PBDIT / Share (Rs.)719.46435.71246.72274.43352.55
PBIT / Share (Rs.)552.29342.14154.37173.97235.72
PBT / Share (Rs.)546.13335.95150.18170.60231.27
Net Profit / Share (Rs.)420.93266.01123.10139.74184.08
NP After MI And SOA / Share (Rs.)429.01271.89128.46145.33187.95
PBDIT Margin (%)15.9411.198.4311.7714.07
PBIT Margin (%)12.248.785.277.469.40
PBT Margin (%)12.108.625.137.329.23
Net Profit Margin (%)9.326.834.205.997.34
NP After MI And SOA Margin (%)9.506.984.396.237.50
Return on Networth / Equity (%)15.7513.287.018.3611.48
Return on Capital Employeed (%)19.4216.028.089.5213.60
Return On Assets (%)11.699.705.196.158.92
Total Debt / Equity (X)0.000.010.010.010.00
Asset Turnover Ratio (%)1.421.481.221.051.20
Current Ratio (X)0.870.570.981.150.74
Quick Ratio (X)0.660.360.770.960.46
Inventory Turnover Ratio (X)16.4411.9412.0710.6310.60
Dividend Payout Ratio (NP) (%)20.1522.0735.0441.2942.57
Dividend Payout Ratio (CP) (%)14.5016.4220.3824.4126.25
Earning Retention Ratio (%)79.8577.9364.9658.7157.43
Cash Earning Retention Ratio (%)85.5083.5879.6275.5973.75
Interest Coverage Ratio (X)116.8470.3758.8581.4179.34
Interest Coverage Ratio (Post Tax) (X)69.3643.9630.3642.4542.42
Enterprise Value (Cr.)393761.56251612.23225648.68204608.95129591.95
EV / Net Operating Revenue (X)2.782.142.552.911.71
EV / EBITDA (X)17.4119.1230.2824.6912.17
MarketCap / Net Operating Revenue (X)2.802.132.582.941.71
Retention Ratios (%)79.8477.9264.9558.7057.42
Price / BV (X)4.634.054.133.952.62
Price / Net Operating Revenue (X)2.802.132.582.941.71
EarningsYield0.030.030.010.020.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Maruti Suzuki India Ltd as of November 21, 2024 is: 11,706.70

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 November 21, 2024, Maruti Suzuki India Ltd is Undervalued by 7.79% compared to the current share price 10,861.00

Intrinsic Value of Maruti Suzuki India Ltd as of November 21, 2024 is: 13,611.80

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 November 21, 2024, Maruti Suzuki India Ltd is Undervalued by 25.33% compared to the current share price 10,861.00

Last 5 Year EPS CAGR: 16.27%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 17.00%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -27.33, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -28.42, which is a positive sign.
  4. The company has higher reserves (48,216.31 cr) compared to borrowings (608.54 cr), indicating strong financial stability.
  5. 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:
      1. Net Profit Margin: 9.32%
        • 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.
      2. ROCE: 19.42% (Industry Average ROCE: 17.7%)
        • 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.
      3. 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.
      4. Interest Coverage Ratio (Post Tax): 69.36
        • 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.
      5. Quick Ratio: 0.66
        • 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.
      6. Stock P/E: 24.3 (Industry average Stock P/E: 27.55)
        • 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.
      7. 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.
    INDUSTRYADDRESSCONTACT
    Auto - Cars & Jeeps1, Nelson Mandela Road, Vasant Kunj, New Delhi Delhi 110070contact@maruti.co.in
    http://www.marutisuzuki.com
    Management
    NamePosition Held
    Mr. R C BhargavaChairman
    Mr. Kenichi AyukawaDirector
    Mr. Hisashi TakeuchiManaging Director & CEO
    Mr. D S BrarIndependent Director
    Mr. R P SinghIndependent Director
    Ms. Lira GoswamiIndependent Director
    Mr. Maheswar SahuIndependent Director
    Mr. O SuzukiDirector & Honorary Chairman
    Mr. T SuzukiDirector
    Mr. Kenichiro ToyofukuDirector - Corporate
    Mr. Kinji SaitoDirector

    FAQ

    What is the latest intrinsic value of Maruti Suzuki India Ltd?

    The latest intrinsic value of Maruti Suzuki India Ltd as on 21 November 2024 is ₹11706.70, which is 7.79% higher than the current market price of ₹10,861.00.

    What is the Market Cap of Maruti Suzuki India Ltd?

    The Market Cap of Maruti Suzuki India Ltd is 3,41,202 Cr..

    What is the current Stock Price of Maruti Suzuki India Ltd as on 21 November 2024?

    The current stock price of Maruti Suzuki India Ltd as on 21 November 2024 is ₹10,861.

    What is the High / Low of Maruti Suzuki India Ltd stocks in FY 2024?

    In FY 2024, the High / Low of Maruti Suzuki India Ltd stocks is 13,680/9,738.

    What is the Stock P/E of Maruti Suzuki India Ltd?

    The Stock P/E of Maruti Suzuki India Ltd is 24.3.

    What is the Book Value of Maruti Suzuki India Ltd?

    The Book Value of Maruti Suzuki India Ltd is 2,835.

    What is the Dividend Yield of Maruti Suzuki India Ltd?

    The Dividend Yield of Maruti Suzuki India Ltd is 1.15 %.

    What is the ROCE of Maruti Suzuki India Ltd?

    The ROCE of Maruti Suzuki India Ltd is 21.8 %.

    What is the ROE of Maruti Suzuki India Ltd?

    The ROE of Maruti Suzuki India Ltd is 16.8 %.

    What is the Face Value of Maruti Suzuki India Ltd?

    The Face Value of Maruti Suzuki India Ltd is 5.00.

    About the Author

    Author Avatar
    Getaka

    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