MARUTI - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.4

Here’s a full-stack breakdown of Maruti Suzuki’s fundamentals and valuation strength

🚗 Core Financials

Return Metrics

ROE of 16.0% and ROCE of 21.8% signal efficient capital deployment.

Strong EPS of ₹461 supports sustainable earnings power at scale.

Quarterly Profitability

Qtr PAT growth from ₹3,727 Cr. to ₹3,911 Cr. is solid; Qtr Profit Var at -1.04% suggests stability rather than contraction.

Debt Position: Debt-to-equity of 0.00 — Maruti has a pristine balance sheet, enabling strong resilience and optionality in capex or expansion.

📊 Valuation Metrics

Metric Value Commentary

P/E 27.0 Fairly valued vs. industry average (31.6)

P/B Ratio ~4.07 Acceptable considering brand strength and asset-heavy model

PEG Ratio 0.37 Very attractive — implies undervaluation relative to earnings growth

Dividend Yield 1.08% Decent, complements total return outlook

Verdict: Fundamentally sound and attractively priced relative to long-term growth prospects.

🔧 Business Model & Strategic Strength

Dominates Indian passenger car segment with ~40% market share.

Scale efficiencies, dense distribution network, and after-sales service help cement its moat.

Strong push into hybrids and EVs, plus export momentum, improve future-readiness.

Production optimization and vendor integration reduce margin pressure.

📉 Technical Snapshot

RSI: 48.5 — Neutral zone, neither overbought nor oversold.

MACD: -23.8 — Indicates short-term bearish momentum; consolidation likely.

DMA View

Price hovering around 50-DMA (₹12,466) and above 200-DMA (₹12,155), reinforcing long-term support.

🎯 Entry Zone & Holding Thesis

Entry Zone: ₹12,150–₹12,300 range — near trend support with minimal downside risk.

Holding Guidance

Suited for long-term investors seeking stable growth, dividend yield, and structural tailwinds (EV transition, export growth).

Ideal candidate for portfolio anchor in auto sector exposure.

Want a peer comparison with Tata Motors or Hyundai to refine conviction further? I can also simulate intrinsic value estimations if you’d like to stress-test the current market pricing.

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