MARUTI.NS
Maruti Suzuki India Limited (MARUTI.NS) stands as a prominent player in the automotive industry with a sizable market capitalization of ₹3.493 trillion. The stock's Price-to-Earnings (P/E) ratio is 24.89, indicating that investors are moderately optimistic about the company's earnings relative to its stock price. Despite a somewhat modest Return on Equity (ROE) of 18.10%, Maruti Suzuki demonstrates a commendable ability to generate returns for its shareholders, though it might not be as high as some competitors in the industry.
The company's debt-to-equity ratio of 17.8% suggests a conservative use of debt, which is generally positive as it indicates lower financial risk. However, a current ratio of 0.866 may raise some concerns regarding its ability to cover short-term liabilities, needing improvement to enhance liquidity. An operating margin of 9.65% reflects the company's efficiency in managing its expenses, though there is room for improvement to bolster its day-to-day profitability.
Maruti Suzuki's free cash flow is solid at ₹24.42 billion, providing a good cushion for business investments and potential expansions. Nevertheless, a negative earnings growth rate of -20.8% signals some challenges in boosting earnings, potentially due to market saturation or increased competition, which investors should watch closely. The revenue growth is quite minimal at 1%, indicating a relatively stagnant sales increase.
With an EBITDA margin of 13.73%, Maruti maintains a reasonable operating profit, yet it falls short compared to higher-margin peers. Institutional investors hold 27.29% of the company's shares, demonstrating significant institutional interest and confidence but also implying that retail investors hold a substantial portion of the stock.
This overview highlights both the strengths and potential areas of concern for Maruti Suzuki, offering key insights for investors navigating the dynamics of the automotive sector and assessing the company's potential for sustainable growth and profitability in the future.
Last Updated: January 14, 2025
| Metric | Value |
|---|---|
| Market Cap | 3756.30 B |
| P/E Ratio | 26.81 |
| ROE | 18.10 % |
| Debt to Equity | 0.178 |
| Operating Margin | 9.65 % |
| Free Cash Flow | 24.42 B |
| Institutional Holdings | 28.94 % |
| Revenue Growth | 1.00 % |
Maruti Suzuki's competition landscape in the Indian automobile market:
- Passenger Vehicles: Comprises hatchbacks, sedans, and SUVs. This is the primary domain where Maruti Suzuki operates.
- Electric Vehicles (EVs) and Hybrid Vehicles: As the global shift towards electric mobility gathers pace, Maruti Suzuki is venturing into this emerging segment.
- Compact Cars: A crucial segment for Maruti Suzuki, given its focus on affordable urban mobility solutions.
Maruti Suzuki remains a formidable player in the Indian automotive market due to its comprehensive service infrastructure, strong brand equity, and customer-centric innovations. While Maruti has been slower to adapt to the electric vehicle revolution compared to some competitors, its focus on hybrid technologies and strategic alliances indicate its intent to maintain leadership. Investors should consider both the resilience shown by Maruti Suzuki in maintaining its market leader status and the pressures from competitors that are more advanced in certain technology segments.
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