Na

1. EQUITY RESEARCH
REPORT
MARUTI SUZUKI
PRESENTED BY :
ROOP KISHOR GUPTA
DHARMESH AGRAWAL

2. Table Of
Content
Introduction Equity
and research
About company
Geic Analysis
Industry Analysis
Swot Analysis
Porter 5C Model &
PLC
Company valuation
Recommendations
PESTLE Analysis
BCG Matrix
GE McKinsey 9 Box
Matrix for Industry

3. About Equity
& Research
• Net realizations expanded 13% YoY (+3.5% QoQ) to
INR566.3k (est. INR550k) fueled by price hikes and
improved mix.
• Gross margin contracted 110bp QoQ (+20bp YoY) to
25.4% (est. 25.5%), adversely impacted by higher RM
cost and QoQ increase in discounts.

4. About us
• Formerly- Maruti Udyog Limited
• Industry- Automotive
• Founded- 24 February 1981
• Headquaters- New Delhi
• Area Served- India
• Products- Automobiles,Automotives
Commercial parts
• Services- Automotive Finance Vehicle
Services

5. KEY PEOPLE
MARUTI SUZUKI WAY OF LIFE
Rc Bhargava
Chairman MD & CEO Vice Chairman Director
Hisashi Takiuchi Kenichi Ayukawa Kinji Saito

6. GEIC
Analysis
Export & Import
Current Global Outlook
Trade Deficit
1
2
3

7. MARUTI SUZUKI COMES
UNDER AUTOMOBILE
INDUSTRY AND IS IN
MATURITY STAGE. IT IS
OVERVALUED.
Industry Analysis

8. PESTLE Analysis

9. BCG Matrix

10. GE McKinsey 9 Box
Matrix for Industry

11. SWOT ANALYSIS
STRENGTHS
• Brand value
• Market share
• Product Quality
• Sales Volume
WEAKNESS
• Penetration Inability
• Government
Intervention
• Weak Interior
Quality
OPPORTUNITIES
• Collaboration
• Technological
Development
• Transport Industry
THREATS
• Controversies
• Intense Competition
• Fall in market share
S
w
O
T

12. Threat of
new
enterant
Threat of
subsitute
MODERATE Bargaining
power of
buyer
Bargaining
power of
supplier
Rivaliary
Among
Existing
Firms
LOW
LOW
MODERATE
HIGH
PORTER
5
FORCES
MODEL

13. MARUTI SUZUKi IS IN THE
MATURITY STAGE
PRODUCT LIFE
CYCLE

14. 1) Enterprise Value
FCFF = EBIT(1-tax)+depreciation-investment in
asset – investment in working capital
=4708.20(1-0.3)+2786.50-3326.90-0
= 3295.74-540.4 = 2755.34
Enterprise value = 2755.34+2755.34*5% / (15%-
5%) = 28931.07
2) Equity Value
Equity value = 28931.078-418.90 = 28512.178
FCFE = 2755.34-125.90(1-0.3)- 381.90 = 2285.31
Enterprise value = 2285.31+2285.31*5% / (15%-5%)
= 23995.75
Equity value = 23995.75-418.90 = 23576.85
COMPANY VALUATION

15. 3) Book Value
Enterprise value = 54,086.00 / 10,78,61,239 = 5014.40
Equity value = 5014.40-418.90 = 4595.50
4) Comparable Company Method
Enterprise value = 810000/ 7,494.70 = 108.07
COMPANY VALUATION
Estimated price = 28512.178 Cr./37861239
= 7530.70
Current market price = 8410

16. Suggestions
Sell your stock
Low return on equity
of 7.58%
Company is almost debt
free
1
2
3

17. THANK
YOU