MARUTI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | MARUTI | Market Cap | 4,46,342 Cr. | Current Price | 14,199 ₹ | High / Low | 17,372 ₹ |
| Stock P/E | 30.7 | Book Value | 3,098 ₹ | Dividend Yield | 0.95 % | ROCE | 21.7 % |
| ROE | 15.6 % | Face Value | 5.00 ₹ | DMA 50 | 15,918 ₹ | DMA 200 | 14,744 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | 0.29 % | PAT Qtr | 3,794 Cr. | PAT Prev Qtr | 3,303 Cr. |
| RSI | 21.7 | MACD | -499 | Volume | 4,08,881 | Avg Vol 1Wk | 8,73,243 |
| Low price | 11,059 ₹ | High price | 17,372 ₹ | PEG Ratio | 0.43 | Debt to equity | 0.00 |
| 52w Index | 49.7 % | Qtr Profit Var | 3.68 % | EPS | 462 ₹ | Industry PE | 30.8 |
📊 Financials: Maruti Suzuki has a market cap of 4,46,342 Cr. with quarterly PAT at 3,794 Cr., up from 3,303 Cr. (3.68% growth). ROE at 15.6% and ROCE at 21.7% reflect strong efficiency and profitability. Debt-to-equity ratio of 0.00 indicates a debt-free balance sheet. EPS stands at 462 ₹, supported by consistent earnings. Cash flows remain robust given its leadership in passenger vehicles and strong domestic demand.
💹 Valuation: Current P/E of 30.7 is aligned with the industry average of 30.8, suggesting fair valuation. P/B ratio is ~4.58 (14,199 ₹ / 3,098 ₹), which is moderately expensive relative to book value. PEG ratio of 0.43 highlights attractive growth prospects relative to valuation. Intrinsic value appears close to current levels, making the stock appealing for long-term investors.
🏭 Business Model & Competitive Advantage: Maruti Suzuki operates in the automotive sector, focusing on passenger vehicles. Its competitive advantage lies in brand dominance, wide distribution, cost efficiency, and strong rural penetration. The company benefits from scale, innovation in hybrid/EV models, and leadership in compact cars, though profitability is sensitive to raw material costs and cyclical demand.
📈 Entry Zone: With RSI at 21.7 (oversold territory) and support around 13,500–14,000 ₹, accumulation in this zone is favorable. Current price at 14,199 ₹ offers a good entry point for long-term investors, especially given strong fundamentals and growth potential.
🕰️ Long-Term Holding Guidance: Maruti Suzuki is fundamentally strong, fairly valued, and has growth potential in EVs and hybrid vehicles. Long-term holding is recommended given its strong return metrics, debt-free balance sheet, and leadership in the Indian automotive market.
Positive
- Strong ROE (15.6%) and ROCE (21.7%).
- Debt-free balance sheet ensures financial stability.
- EPS of 462 ₹ reflects solid profitability.
- DII holdings increased by 0.29%, showing domestic investor confidence.
Limitation
- P/B ratio (~4.58) is moderately expensive relative to book value.
- FII holdings decreased slightly (-0.02%).
- Quarterly profit growth modest at 3.68%.
- Stock trading below DMA 50 and DMA 200, indicating weak momentum.
Company Negative News
- Weak technical momentum with RSI at oversold levels.
- Reduced foreign institutional investor confidence.
Company Positive News
- Quarterly PAT improved from 3,303 Cr. to 3,794 Cr.
- Strong brand dominance and leadership in passenger vehicles.
- EV and hybrid initiatives provide long-term growth opportunities.
Industry
- Automotive sector benefits from rising demand and EV adoption.
- Industry P/E at 30.8 highlights Maruti’s fair valuation relative to peers.
Conclusion
⚖️ Maruti Suzuki is a fundamentally strong company with robust return metrics, debt-free balance sheet, and leadership in the Indian automotive market. Entry around 13,500–14,000 ₹ is favorable, and long-term holding is recommended given its strong fundamentals and EV growth potential.