MARUTI - Investment Analysis

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

Investment Rating: 4.6

📊 Fundamental Analysis

Maruti Suzuki is a dominant player in India’s auto sector with strong financials, excellent brand equity, and a solid balance sheet. Its valuation is attractive relative to growth potential.

Metric Value Implication

Market Cap ₹3,92,156 Cr. Large-cap; industry leader with strong moat

Stock P/E 27.0 Undervalued vs. Industry PE of 31.6 — attractive entry point

PEG Ratio 0.37 Very attractive — undervalued relative to growth

ROE / ROCE 16.0% / 21.8% Strong profitability and capital efficiency

Dividend Yield 1.08% Modest yield — growth-focused

Debt-to-Equity 0.00 Debt-free — excellent financial health

EPS ₹461 Robust earnings — supports valuation

Profit Growth (QoQ) -1.04% Flat — but not concerning given seasonal auto trends

📉 Technical & Trend Analysis

Current Price: ₹12,469

DMA 50 / DMA 200: ₹12,466 / ₹12,155 — trading right at 50 DMA, slightly above 200 DMA

RSI: 48.5 — neutral zone

MACD: -23.8 — bearish crossover, short-term weakness

Volume: Slightly above average — stable interest

✅ Is It a Good Long-Term Investment?

Yes — highly attractive. Maruti combines strong fundamentals, dominant market share, and attractive valuation (PEG 0.37). It’s well-positioned for long-term growth, especially with its push into EVs and hybrid models.

🎯 Ideal Entry Price Zone

Buy Zone: ₹12,000–₹12,300

Near 200 DMA and technical support

RSI and MACD suggest short-term weakness — good for accumulation

PEG ratio supports long-term upside

🧭 Exit Strategy / Holding Period (If Already Holding)

If you're already invested

Holding Period: 3–5 years to capture full EV transition and volume growth

Exit Strategy

Partial Exit near ₹13,500–₹13,700 if valuation stretches (P/E > 32 or PEG > 1.0)

Full Exit only if ROE drops below 13% or competitive pressure erodes margins

Reassess if quarterly PAT declines consistently or EV adoption lags

Would you like a side-by-side comparison with Tata Motors and M&M to evaluate leadership in India’s evolving auto landscape?

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