MARUTI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | MARUTI | Market Cap | 4,09,761 Cr. | Current Price | 13,055 ₹ | High / Low | 17,372 ₹ |
| Stock P/E | 28.2 | Book Value | 3,098 ₹ | Dividend Yield | 1.03 % | ROCE | 21.7 % |
| ROE | 15.6 % | Face Value | 5.00 ₹ | DMA 50 | 14,682 ₹ | DMA 200 | 14,653 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | 0.29 % | PAT Qtr | 3,794 Cr. | PAT Prev Qtr | 3,303 Cr. |
| RSI | 33.5 | MACD | -621 | Volume | 5,80,784 | Avg Vol 1Wk | 9,75,945 |
| Low price | 11,059 ₹ | High price | 17,372 ₹ | PEG Ratio | 0.39 | Debt to equity | 0.00 |
| 52w Index | 31.6 % | Qtr Profit Var | 3.68 % | EPS | 462 ₹ | Industry PE | 29.0 |
📊 Financial Overview
- Revenue & Profitability: PAT rose from 3,303 Cr. to 3,794 Cr. QoQ, showing steady growth. EPS at 462 ₹ is strong relative to valuation.
- Margins & Returns: ROE at 15.6% and ROCE at 21.7% are healthy, reflecting solid capital efficiency.
- Debt & Liquidity: Debt-to-equity ratio of 0.00 indicates a debt-free balance sheet, enhancing financial stability.
- Cash Flow: Strong profitability supports reinvestment, dividend payouts, and expansion opportunities.
💹 Valuation Metrics
- P/E Ratio: 28.2 vs Industry PE of 29.0 → Fairly valued.
- P/B Ratio: ~4.2 (Price 13,055 ₹ / Book Value 3,098 ₹) → Reasonable relative to assets.
- PEG Ratio: 0.39 → Attractive, reflecting growth at a fair valuation.
- Intrinsic Value: Current price is close to fair value, supported by strong fundamentals.
🏢 Business Model & Competitive Advantage
Maruti Suzuki is India’s largest passenger vehicle manufacturer, with strong brand recognition, extensive distribution, and leadership in compact cars. Its scale, innovation in hybrid/EV segments, and cost efficiency provide a competitive edge. Diversification across models and strong market share enhance resilience.
📈 Entry Zone & Long-Term Guidance
Technically, RSI at 33.5 and negative MACD suggest oversold conditions. A good entry zone would be 12,500–12,800 ₹ (near support levels). Long-term holding is advisable given strong fundamentals, leadership position, and growth prospects in EV adoption.
✅ Positive
- Strong EPS (462 ₹) and profitability.
- Debt-free balance sheet.
- Fair valuation compared to industry PE.
- DII holdings increased (+0.29%), showing domestic confidence.
⚠️ Limitation
- Quarterly PAT growth slowed (3.68%).
- FII holdings decreased (-0.02%), showing cautious foreign sentiment.
- Dividend yield at 1.03% offers limited income support.
📉 Company Negative News
- Minor slowdown in quarterly profit growth.
- FII reduced holdings slightly.
📈 Company Positive News
- EPS remains strong at 462 ₹.
- DII accumulation signals domestic support.
🏭 Industry
The automotive industry benefits from rising consumer demand, infrastructure growth, and EV adoption. Industry PE at 29.0 highlights Maruti Suzuki’s fair valuation relative to peers. Cyclical risks remain tied to raw material costs and consumer sentiment.
🔎 Conclusion
Maruti Suzuki is fundamentally strong with robust profitability, debt-free status, and fair valuation. Despite minor profit slowdown and cautious foreign sentiment, its market leadership and EV prospects make it a solid long-term investment. Accumulation near 12,500–12,800 ₹ is recommended for investors seeking steady growth and resilience.