FUNDAMENTAL AND TECHNICAL ANALYSIS OF MARUTI SUZUKI

Presented by:-
- Vijay Devani - Bhavik Prajapati
- Shailesh Bhalala - Hiren Joshi
- Nimesh Bhaesadadiya - Mihir Rana
- Ashish Tailor - Hitesh Basopiya
- Hiren Patel - Mazahar Khan
- Mahesh Sapariya
Fundamental Analysis

-To measure stock’s or script’s intrinsic value by examining related economic,

financial and other factors.

-under-priced = buy, over-priced = sell or short

Indian Economic Analysis

-GDP
-Inflation Rate
- Interest Rate
- Exchange Rate
- Flow of FII
- Sensex movement
GDP Groth rate

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India's Economy Expanded 8.8% in The Second Quarter From a Year Earlier,
Compared to an 8.6% On-Year Expansion in the First Due To Robust Activity In
Manufacturing. GDP Of The Indian Economy Is Estimated To Grow At The Rate
Of 8.5% In Current Fiscal Year And 9% In 2011-12, According To Finance
Minister, It Will Be So Because Of Policies Of FDI, SEZ, & NRI Investment have
been Framed To Give A Push To Economy And GDP, With Macro Economic
Stability.
Inflation rate

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Inflation rate in India was reported at 13.73 percent in June of 2010. Inflation
rate is responding due to unbalanced Aggregate Demand and Aggregate
Supply. Recently inflation rate is decrease due to the mgt. of export of
products, and measure taken by RBI. In coming year, it is also expected to
decrease.
Interest rate

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The Benchmark Interest Rate(Reverse Repo Rate) In India Was Last Reported
At 4.50 Percent. From 2000 Until 2010, India's Average Interest Rate Was 5.82
Percent. RBI Usually Raise Interest Rate To Fight Against Inflation.
Exchange Rate(USDINR)

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From the graph we can say that Indian Rupee exchange rate (USDINR)
depreciated 2.81 percent during the last 12 months.
Flow of FII
4000

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3000

2000

1000

0
1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 10 10 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 0 9 0 9 0 9 0 9 0 9 0 9 0 9 0 9 0 9 0 9
ep- ep- ug- ug- ug- Jul- Jul- un- un- un- ay- ay- ay- pr- pr- ar- ar- ar- eb- eb- an- an- an- ec- ec- ov- ov- ov- ct- ct- ep- ep- ep-
-S -S -A -A -A 2- 2- -J -J -J -M -M -M -A -A -M -M -M -F -F -J -J -J -D -D -N -N -N -O -O -S -S -S
17 6 25 13 3 2 1 30 18 8 2 7 17 5 23 12 30 1 7 5 2 2 9 29 1 8 6 22 1 0 30 18 6 2 6 1 4 3 0 16 4
-1000

-2000

-3000

-4000

From last 4 months FII net flow is in positive value. We can also find that it is
correlate to BSE sensex movement.
BSE-Sensitive Index movement

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SENSEX, rallied 2649 points or 17.07 percent during the last 12 months due to
strong economic outlook and somehow controlled economic factors. Usually,
Sensex is responding by the Results of company earning, global cues, investor
sentiment, sectorial performance and country’s economic growth.
Monetary policy data

Repo Rate : 6.00%

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Reverse Repo rate: 5.00%
Bank rate : 6%
SLR : 25%
CRR :6%
Indian Automobile Industry Analysis

Market capitalization of leading firms

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FIRM PRODUCTS FOREIGN Partners MARKET STOCK
CAPITALIZAT LISTING
ION(IN
BILLIONS)
Maruti Suzuki Passenger Vehicles Suzuki Motor 9.2 Mumbai

Tata Motors Passengers and Fiat 7.4 Mumbai, Ney

Commercial Vehicles york

Mahindra & Passengers Navistar for 6.1 Mumbai,

Mahindra ,Commercial commercial london
Vehicles,Two vehicles,Renault for
wheelers Passenger cars

Hero Honda Two Wheelers Honda Motors 7.7 Mumbai

Bajaj Auto Two and Three Renault-Nissan for 5.7 Mumbai,

wheelers planned small car london
Following are the sales data
Reasons for high sales growth rate

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-New launches of product like Maruti Suzuki Ritz (May 2009),
all-new Grand Vitara (July'09), new Estilo with K-series engine
(Aug'09), new SX4 with VVT engine and SX4 with automatic
transmission (Oct'09) and Eeco (January 2010).

-Favorable conditions in the domestic market supported by the

government's stimulus package and ease of automobile
finance.

-Prices of raw material was preferable.

Future Forecast

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-Due to high sales in year 2010 maruti is investing 17 billion
rupees for new plants.

-As per the indian context people of india will buy vehicles in
the month of october –november due to the festivals so the
sales and the share price will increase.

-Metal price ,fuel and raw material prices are going to increase
as a result which will lead to increase in the production cost of
the cars and will effect on share price.
Maruti Suzuki India Ltd.’s Analysis

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2010 2009 2008
Liquidity Measurement:
- Current Ratio 1.2 1.2 1.1
- Quick Ratio 0.67 1.26 0.66

Profitability Measurement
- Gross Margin 8.85 5.77 10.97
- Net Profit Margin 8.29 5.68 9.24
- ROE 21.1 13.04 20.56
Maruti Suzuki India Ltd.’s Analysis

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2010 2009 2008
Investment Valuation Ratio

- EPS 86.45 42.15 60.21

- Price to book value 3.5 2.4 2.9
- Price to earning ratio 16.6 18.7 14.1
- PEG
Maruti Suzuki Management
-CSR activity of company

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-Progressive Maruti’s R&D.
-Maruti Insurance and Finance
- Future business plan & project
Technical Analysis

-In the nerrowest sense,tech. Analysis is based on the assumption that market price
flutuations reflact the logical & emotional forces preveling in the stock market

-Tech. Analysis can be broaken down into three essential parts,

1.sentiments,
2.flow of funds
3.market struker indicators
Daily chart
Weekly chart
Monthly chart
Six Months chart

Rounded Top

Rounded Bottom

Rounded Bottom
Moving Average chart
CONCLUSION

-Sensex increase to 3 % in last two days, it is 32 month high,

that may affect price of Maruti Suzuki.

-The main reasons for this latest rally include strong foreign
institutional investors (FII), healthy Indian & Chinese mfg. data.

-Good monsoon
-Industrial growth-(13.8 %)
-GDP( 8-8.5 %)
-Reforms in the govt. policies
-FDI in media & retail
-Fuel & Gas price

-FII inflows
-64k crore into the Indian markets since January