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
Managing Director & CEO Director & Managing Executive Officer (Production)

Mr. R. C. Bhargava
Mr. Shinzo Nakanishi Mr. Tsuneo Ohashi

Director & Managing Executive Officer (Marketing & Sales)

Director Chief General Manager (Legal) and Company Secretary

Mr. Shuji Oishi

Mr. Osamu Suzuki 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 Indias 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
Other Income Total Income Total Expenses Operating Profit Interest Depreciation

36,286.50
1,222.70 37,582.40 33,435.70 2,924.00 24.40 1,013.50

29,317.70
662.00 30,180.60 25,694.00 3,824.60 33.50 825.00

20,729.40
491.70 20,864.50 18,396.20 1,976.60 51.00 706.50

Profit Before Tax

3,108.80

3,628.10

1,710.80

Balance Sheet
Particulars Equity Share Capital Reserves Secured Loans 2011 2010 2009

144.50
13,723.00 31.20 278.10 5,529.40

144.50
11,690.60 26.50 794.90 5,024.70

144.50
9,200.40 0.10 698.80 4,070.80

Unsecured Loans
Net Block

Net Current Assets

Total Assets / Liabilities

2,112.10
14,176.80

67.60
12,656.50

1,938.40
10,043.80

Current Ratio
1.6 1.4 1.2 1 0.8 0.91 0.91 Current Ratio 1.51

1.5

0.6
0.4 0.2 0 2008 2009 2010 2011

Debt Equity Ratio

0.12 0.11 0.1 0.08 0.07 0.06 0.04 0.02 0 0.02 0.07

Debt Equity Ratio

2008

2009

2010

2011

Ratios Analysis
Particulars Quick Ratio Interest Cover Inventory Turnover Ratio Return On Net Worth(%) Operating Profit Margin(%) Net Profit Margin(%) 2011 1.16 128.41 28.69 2010 0.68 105.39 30.47 2009 1.26 34.21 30.46

16.50
8.05 6.10

21.10
12.74 8.34

13.04
9.18 5.72

7.5 6 4.5 5 3.5

7
6 5 4 3 2 1 0 2007 2008 2009 Dividend Trend 2010 2011

Performance Chart

Index Comparison

VALUATION
Maruti Suzuki
LTP Change (%) 1104.95 2.82 Mahindra & Mahindra 812.60 2.93

52 W H/L

1,599.90 / 1,045.00

826.40 / 585.10

Particulars
P/E Price/Book

2011
13.11 2.24

Industry P/E
Market Cap Div Yield(%) EPS CEPS

15.92
31104.06 0.70 79.22 114.29

Calculation of Target Price

P0 = D1

1+ r

TV

1+ r

5.3 1104.95 = +

TV

2011 2010

7.5 3.5 3.5 5

1+0.13

1+0.13

TV

Rs.1243.2 9

2009 2008

2007

4.5

Recommendation
Fundamental point of view.