Maruti Suzuki company analysis

Industry Profile : Indian automobile industry is one of the largest in world. In FY 15-16 production total was 23.96 million vehicle. The sector account for 7.1 per cent of  GDP of India. Out of which 81% is Two wheeler market. Maruti in Car and Hero Moto corp is in Two wheeler market are leader. Passenger Vehicle holding 13% market. As many companies trying to increase revenue, rural Market is large for further growth.

From Tesla to Kia motors, many international companies also want to introduce to India.

Company Profile :  The company is Founded in 1981 as Joint Venture of Govt of India and Suzuki Japan. Now it is owned by Suzuki. Today the company is manufacturing Ciaz, Ertiga, Wagon R, Alto, Swift, Celerio, Omni, Baleno, Swift Dzire.  The success of the company is such huge that Half of the car sold in India are from Maruti.

The company is also in business of Buying of used cars, Selling spare parts. The company operates from its five plants. Gurgaon, palam, Manesar.

Share Holding :Suzuki the parent holds 56.21% in the company. The company is very famous among mutual funds, Financial institution. Holding nearly 12.25%. Life Insurance Corporation and HDFC Trustee of HDFC mutual fund are biggest stake holder after promoter. holding more than 1%. Foreign investors hold 24.5%. Nearly 3.8% is held with public.

Financials and Ratios :

 2010-112011-122012-132013-142014-152015-162016-17
Revenue36618.435587.143567.943700.6049970.6057746.370609.9
Profit2288.601635.202392.12783.3711.204571.407409.4
NPM6.244.595.486.367.427.9110.4
EPS79.2256.6079.1992.13122.85151.33
Book Value479.84525.52615.20694.64784.91894.27
Dividend Payout9.4613.2510.1013.0220.3423.12
Dividend per share7.57.58122535
ROE16.5010.7612.8713.2615.6516.92
ROCE15.8810.3711.9512.391516.38
ROA12.427.338.949.1111.0611.66
Debt to equity0.010.070.070.080.0100
Asset turnover198.74159.56163.04143.11148.93147.32

Future Prospects : Market leader in Automobile India, one of the biggest subsidiary of Suzuki, Well known in India and what not. Financially also very strong.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter