- Maruti Suzuki’s net income for the second quarter is 32.9 billion rupees, which represents a 7.2% increase year-over-year. However, it fell short of the estimated 35.71 billion rupees.
- The company’s revenue rose by 13% year-over-year, reaching 421 billion rupees, surpassing the estimated 399.3 billion rupees.
- Total costs for the quarter were 387.6 billion rupees, marking a 15% increase from the previous year.
- Raw material costs hit 150 billion rupees, a 12% year-over-year increase, but were lower than the estimated 298.39 billion rupees.
- Employee benefits expenses climbed to 17.8 billion rupees, up 21% compared to the previous year, and were above the estimated 16.65 billion rupees.
- Analyst recommendations for Maruti Suzuki include 37 buys, 7 holds, and 3 sells.
Maruti Suzuki India on Smartkarma
Analyst Coverage of Maruti Suzuki India on Smartkarma
Analysts on Smartkarma, such as Sudarshan Bhandari, are bullish on Maruti Suzuki India‘s resurgence. In a report titled “Maruti Suzuki’s Resurgence: Winning with SUVs and a Timely Tax Break,” Bhandari highlights how MSIL dominates the UV segment with a 41% share. This growth is attributed to key launches and revised GST rates, driving volume and market share growth. With strong exports and high EBITDA margins, Maruti Suzuki has decisively shifted focus to UVs, becoming a full-range powerhouse. The timely tax break of a flat GST rate for SUVs has further boosted affordability and market growth, creating a strong catalyst for the company’s success.
Another analyst, Nimish Maheshwari, shares positive sentiments in a report about Maruti Suzuki’s E-Vitara launch. Maheshwari discusses how Prime Minister Modi’s emphasis on “Make in India, Make for the World” during the launch of Maruti Suzuki’s e-Vitara EV production boosts India’s EV manufacturing and global exports. The significant investment of INR 70,000 crore by Suzuki over the coming years signals a commitment to positioning India as a key player in the global EV manufacturing landscape. This launch not only strengthens local EV infrastructure but also enhances the Japan-India industrial synergy, marking a significant step towards India’s growth as a global EV manufacturing hub.
A look at Maruti Suzuki India Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Maruti Suzuki India, a company known for manufacturing and exporting automobiles, holds promising long-term prospects as indicated by its Smartkarma Smart Scores. With an impressive momentum score of 5, Maruti Suzuki seems to be on a strong upward trend. This could signify positive market sentiment and potential for growth in the future. Additionally, the company scores well in terms of dividend, growth, and resilience, with scores of 4 across the board. These scores suggest that Maruti Suzuki is likely to provide stable returns to investors over the long run. While its value score is somewhat modest at 2, the overall outlook for Maruti Suzuki appears optimistic, backed by its solid performance across multiple key factors.
Maruti Suzuki India Limited, in collaboration with Suzuki of Japan, has established itself as a key player in the Indian automotive industry, catering to the mass market by offering affordable cars. The company’s focus on providing value to the average Indian consumer has been integral to its success. With strong scores in dividend, growth, resilience, and particularly momentum, Maruti Suzuki demonstrates its capacity for sustained growth and financial stability. Investors may find Maruti Suzuki an attractive choice for long-term investment, given its robust performance across various aspects of its operations.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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