MARUTI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | MARUTI | Market Cap | 4,18,596 Cr. | Current Price | 13,314 ₹ | High / Low | 17,372 ₹ |
| Stock P/E | 29.0 | Book Value | 3,343 ₹ | Dividend Yield | 1.01 % | ROCE | 19.2 % |
| ROE | 14.5 % | Face Value | 5.00 ₹ | DMA 50 | 13,631 ₹ | DMA 200 | 14,269 ₹ |
| Chg in FII Hold | -1.64 % | Chg in DII Hold | 1.25 % | PAT Qtr | 3,590 Cr. | PAT Prev Qtr | 3,794 Cr. |
| RSI | 50.7 | MACD | -57.2 | Volume | 7,18,163 | Avg Vol 1Wk | 6,80,352 |
| Low price | 12,016 ₹ | High price | 17,372 ₹ | PEG Ratio | 0.97 | Debt to equity | 0.00 |
| 52w Index | 24.2 % | Qtr Profit Var | -3.25 % | EPS | 459 ₹ | Industry PE | 27.3 |
📊 Maruti Suzuki (MARUTI) demonstrates strong fundamentals with a market cap of ₹4,18,596 Cr. and current price of ₹13,314, trading below both its 50 DMA (₹13,631) and 200 DMA (₹14,269), indicating near-term weakness. Efficiency metrics are solid — ROE at 14.5% and ROCE at 19.2% — supported by EPS of ₹459. Valuation remains fair with a P/E of 29.0 compared to the industry average of 27.3, while PEG ratio at 0.97 suggests reasonable growth-adjusted valuation. Debt-to-equity at 0.00 highlights a debt-free balance sheet. Quarterly PAT declined slightly (₹3,794 Cr → ₹3,590 Cr.), reflecting earnings moderation. Institutional flows are mixed, with FIIs reducing (-1.64%) and DIIs increasing (+1.25%).
💡 Entry Zone: ₹13,000–₹13,200 (near support levels)
📈 Long-Term Holding: Attractive for long-term investors given strong fundamentals, debt-free status, and fair valuation. Accumulation on dips below ₹13,200 offers favorable risk-reward.
✅ Positive
- Strong ROE (14.5%) and ROCE (19.2%) highlight efficiency
- Fair valuation (P/E 29.0 vs industry 27.3)
- PEG ratio (0.97) indicates reasonable growth-adjusted valuation
- Debt-free balance sheet (Debt-to-equity 0.00)
- DII holdings increased (+1.25%), showing domestic confidence
⚠️ Limitation
- Quarterly PAT decline (-3.25%) shows earnings moderation
- FIIs reduced holdings (-1.64%), showing weaker foreign confidence
- Stock trading below DMA 50 and DMA 200, indicating technical weakness
- MACD negative (-57.2) suggests bearish momentum
📉 Company Negative News
- Sequential profit decline in recent quarter
- Reduced foreign institutional participation
📈 Company Positive News
- Strong EPS base (₹459) supports earnings visibility
- DII support increased (+1.25%)
- Debt-free balance sheet enhances financial stability
🏭 Industry
- Automobile sector trades at P/E 27.3, making Maruti fairly valued
- Sector outlook supported by strong demand in passenger vehicles and EV initiatives
🔎 Conclusion
Maruti Suzuki is fundamentally strong with robust profitability, debt-free balance sheet, and fair valuation. Entry near ₹13,000–₹13,200 offers a favorable accumulation zone. Long-term investors can hold confidently, as fundamentals and sector positioning support sustained growth, though near-term weakness may persist due to technical resistance and FII outflows.