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Presentation on Maruti Suzuki India Limited
Presented By:-
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
Business
• Compact Segment.
• Sedan Segment.
• Luxury Segment.
• SUV Segment.
Management
Chairman Mr. R. C. BhargavaManaging Director & CEO Mr. Shinzo Nakanishi
Director & Managing ExecutiveOfficer (Production)
Mr. Tsuneo Ohashi
Director & Managing ExecutiveOfficer (Marketing & Sales)
Mr. Shuji Oishi
Director Mr. Osamu Suzuki
Chief General Manager(Legal) and CompanySecretary
Mr. S. Ravi Aiyar
Shareholding Pattern
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.
Growth Drivers
• Increase in income level.
• Change in mindset.
• Infrastructure development
• India’s Population.
• Automotive hub.
Concerns• Rising interest rates.
• Rising fuel prices.
• Raising prices of raw material.
• Threat of new entrant.
• Labour unrest.
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.
Market Share
Financials
Profit & Loss account
Particulars 2011 2010 2009
Net Sales 36,286.50 29,317.70 20,729.40
Other Income 1,222.70 662.00 491.70
Total Income 37,582.40 30,180.60 20,864.50
Total Expenses 33,435.70 25,694.00 18,396.20
Operating Profit 2,924.00 3,824.60 1,976.60
Interest 24.40 33.50 51.00
Depreciation 1,013.50 825.00 706.50
Profit Before Tax 3,108.80 3,628.10 1,710.80
Balance SheetParticulars 2011 2010 2009
Equity Share Capital
144.50 144.50 144.50
Reserves 13,723.00 11,690.60 9,200.40
Secured Loans 31.20 26.50 0.10
Unsecured Loans 278.10 794.90 698.80
Net Block 5,529.40 5,024.70 4,070.80
Net Current Assets 2,112.10 67.60 1,938.40
Total Assets / Liabilities 14,176.80 12,656.50 10,043.80
2008 2009 2010 20110
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
0.91
1.51
0.91
1.5
Current Ratio
Current Ratio
2008 2009 2010 20110
0.02
0.04
0.06
0.08
0.1
0.120.11
0.07 0.07
0.02
Debt Equity Ratio
Debt Equity Ratio
Ratios Analysis
Particulars 2011 2010 2009
Quick Ratio 1.16 0.68 1.26
Interest Cover 128.41 105.39 34.21
Inventory Turnover Ratio
28.69 30.47 30.46
Return On Net Worth(%)
16.50 21.10 13.04
Operating Profit Margin(%) 8.05 12.74 9.18
Net Profit Margin(%) 6.10 8.34 5.72
Dividend History
2007 2008 2009 2010 20110
1
2
3
4
5
6
7
8
4.55
3.5
6
7.5
Dividend Trend
Performance Chart
Index Comparison
VALUATION
Maruti SuzukiMahindra & Mahindra
LTP 1104.95 812.60
Change (%) 2.82 2.93
52 W H/L1,599.90 / 1,045.00
826.40 / 585.10
Particulars 2011
P/E 13.11
Price/Book 2.24
Industry P/E 15.92
Market Cap 31104.06
Div Yield(%) 0.70
EPS 79.22
CEPS 114.29
P0 =
D1
1+ r+
TV
1+ r
1104.95 =
5.3
1+0.13+
TV
1+0.13
Dividend History
2011 7.5
2010 3.5
2009 3.5
2008 5
2007 4.5
TV = Rs.1243.29
Calculation of Target Price
VALUATION……
Recommendation
• Fundamental point of view.