MARUTI - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.7

📊 Core Financials Analysis

Profitability

PAT held steady at ₹3,712 Cr — consistent earnings with a slight QoQ uptick.

EPS: ₹446 — robust, reflecting strong bottom-line performance.

Return Metrics

ROCE: 21.7% — excellent capital efficiency.

ROE: 15.6% — solid shareholder return.

Debt Profile

Debt-to-equity: 0.00 — completely debt-free, a major strength.

Cash Flow: Not explicitly stated, but consistent profits and zero debt imply strong operating cash generation.

💹 Valuation Indicators

Metric Value Commentary

P/E Ratio 35.5 Slightly below industry average (41.2) — fair valuation for a market leader.

P/B Ratio ~5.29 Reasonable given strong ROE and brand premium.

PEG Ratio 0.49 Very attractive — undervalued relative to growth.

Intrinsic Value Likely near current price Supported by earnings strength and growth outlook.

🧠 Business Model & Competitive Advantage

Maruti Suzuki is India’s largest passenger vehicle manufacturer and a subsidiary of Suzuki Motor Corporation. Its strengths include

Market Dominance: Holds ~45% of India’s passenger vehicle market

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Product Breadth: Offers a wide range of vehicles — from entry-level hatchbacks to premium SUVs — catering to diverse consumer segments

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Manufacturing Scale: Over 2 million vehicles produced annually with high operational efficiency

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Distribution Network: 2,987 Arena outlets, 495 Nexa outlets, and 4,964+ service points — unmatched reach across India

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Export Leadership: Accounts for ~50% of India’s auto exports in Q1 FY2025

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Innovation & Sustainability

Collaborations with Toyota for recycling and dismantling initiatives

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Smart Finance platform and digital transformation for customer convenience.

Its competitive edge lies in brand loyalty, cost-efficient production, and deep market penetration, making it a cornerstone of India’s automotive landscape.

📈 Technical & Sentiment Signals

RSI: 78.7 — overbought zone, short-term caution advised.

MACD: Strongly positive — bullish momentum.

Volume: Above average — strong investor interest.

DMA 50/200: Price well above both — confirms long-term uptrend.

🎯 Entry Zone & Long-Term Guidance

Suggested Entry Zone: ₹14,000–₹14,500 — near DMA levels and below RSI peak.

Long-Term View: Maruti is a high-quality, dominant auto play with strong fundamentals, zero debt, and a compelling PEG ratio. Ideal for long-term holding, especially for investors seeking exposure to India’s mobility growth and export potential. Dividend yield of 0.85% adds modest income support.

Let me know if you'd like a side-by-side comparison with Tata Motors or Hyundai India to sharpen your view.

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businessmodelanalyst.com

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www.pocketful.in

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iide.co

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