Maruti Suzuki Q3 Results Review - Inline; Demand Outlook Moderates For FY25: Motilal Oswal

Motilal Oswal Report

Maruti Suzuki India Ltd.‘s Q3 FY24 performance was in line. The company's Ebitda margin expanded ~200 basis points YoY to 11.7%, despite higher discounts during the quarter. While the passenger vehicle growth outlook appears to moderate in FY25E, the market share gains through sports utility vehicle launches and growth in compressed natural gas penetration should augur well for the company.

We cut our FY24E/25E earnings per share by ~3% each to factor in the sustained weakness in the lower-end passenger vehicle segment. The stock trades at 23.8 times /22.8 times FY24E/FY25E consolidated EPS.

Reiterate 'Buy' with a target price of Rs 11,850 (premised on 25 times December- 25E consolidated earnings per share).

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