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Maruti analysis

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Maruti analysis

  1. 1. Presentation onMaruti Suzuki India Limited Presented By:-
  2. 2. COMPANY INTRODUCTION• Maruti Udyog Limited (MUL) was established in Feb 1981.• A license and a Joint Venture agreement were signed with the Suzuki Motor Company.• First Indian automobile company to join the million clubs Invests Rs 1,700 Crore in new facility to expand capacity by 2.5 lakh units.• Maruti has a network of 1000 sales outlets across 668 cities.• Out of 5 top selling cars, 4 are from Maruti.• Credit Rating :- AAA
  3. 3. Business• Compact Segment.• Sedan Segment.• Luxury Segment.• SUV Segment.
  4. 4. ManagementChairman Mr. R. C. BhargavaManaging Director & CEO Mr. Shinzo NakanishiDirector & Managing Executive Mr. Tsuneo OhashiOfficer (Production)Director & Managing Executive Mr. Shuji OishiOfficer (Marketing & Sales)Director Mr. Osamu SuzukiChief General Manager Mr. S. Ravi Aiyar(Legal) and CompanySecretary
  5. 5. Shareholding Pattern
  6. 6. Sector Analysis• Impact of raising finance cost.• Sales of PV cars have grown at a CAGR of 8.8%, which is less than previous year.• In July car sales dropped by 9%.• Decrease in quarter ended sales.
  7. 7. Growth Drivers• Increase in income level.• Change in mindset.• Infrastructure development• India’s Population.• Automotive hub.
  8. 8. Concerns• Rising interest rates.• Rising fuel prices.• Raising prices of raw material.• Threat of new entrant.• Labour unrest.
  9. 9. Company Analysis• Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea.• Car industry grew by 29% in the year 10-11.• Quarterly sale has been declined.• Increase in sales from 1.02 millions to 1.27 million.
  10. 10. Market Share
  11. 11. Financials
  12. 12. Profit & Loss accountParticulars 2011 2010 2009Net Sales 36,286.50 29,317.70 20,729.40Other Income 1,222.70 662.00 491.70Total Income 37,582.40 30,180.60 20,864.50Total Expenses 33,435.70 25,694.00 18,396.20Operating Profit 2,924.00 3,824.60 1,976.60Interest 24.40 33.50 51.00Depreciation 1,013.50 825.00 706.50Profit Before 3,108.80 3,628.10 1,710.80Tax
  13. 13. Balance SheetParticulars 2011 2010 2009Equity Share 144.50 144.50 144.50CapitalReserves 13,723.00 11,690.60 9,200.40Secured Loans 31.20 26.50 0.10Unsecured 278.10 794.90 698.80LoansNet Block 5,529.40 5,024.70 4,070.80Net Current 2,112.10 67.60 1,938.40AssetsTotal Assets / 14,176.80 12,656.50 10,043.80Liabilities
  14. 14. Current Ratio1.6 1.51 1.51.41.2 1 0.91 0.910.8 Current Ratio0.60.40.2 0 2008 2009 2010 2011
  15. 15. Debt Equity Ratio0.12 0.11 0.10.08 0.07 0.070.06 Debt Equity Ratio0.040.02 0.02 0 2008 2009 2010 2011
  16. 16. Ratios AnalysisParticulars 2011 2010 2009Quick Ratio 1.16 0.68 1.26Interest Cover 128.41 105.39 34.21Inventory Turnover 28.69 30.47 30.46RatioReturn On Net 16.50 21.10 13.04Worth(%)Operating Profit 8.05 12.74 9.18Margin(%)Net Profit 6.10 8.34 5.72Margin(%)
  17. 17. 8 7.57 66 55 4.54 3.53210 2007 2008 2009 2010 2011 Dividend Trend
  18. 18. Performance Chart
  19. 19. Index Comparison
  20. 20. VALUATION Mahindra & Maruti Suzuki MahindraLTP 1104.95 812.60Change (%) 2.82 2.93 1,599.90 /52 W H/L 826.40 / 585.10 1,045.00
  21. 21. Particulars 2011P/E 13.11Price/Book 2.24Industry P/E 15.92Market Cap 31104.06Div Yield(%) 0.70EPS 79.22CEPS 114.29
  22. 22. Calculation of Target Price D1 TV P0 = + 1+ r 1+ r 5.3 TV 2011 7.5 1104.95 = + 1+0.13 1+0.13 2010 3.5 TV = Rs.1243.2 2009 3.5 9 2008 5 2007 4.5
  23. 23. Recommendation• Fundamental point of view.

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