About the Company:
Maruti Suzuki Limited, formerly known as Maruti Udyog Limited, is an automobile manufacturer in India. Maruti Udyog Limited was founded by the Government of India in 1981, only to merge with the Japanese automobile company Suzuki in October 1982. It is a 56.21% owned subsidiary of the Japanese car and motorcycle manufacturer Suzuki Motor Corporation. The company headquartered located at New Delhi. The first manufacturing factory of Maruti was established in Gurugram, Haryana, in the same year. In May 2015, the company produced its fifteen millionth vehicle in India, a Swift Dzire. As of July 2018, it had a market share of 53% of the Indian passenger car market. The other activities of the Company consist of facilitation of pre-owned car sales, fleet management and car financing. Maruti Suzuki manufactures and sells popular cars such as the Ciaz, Ertiga, Wagon R, Swift, Celerio, Swift Dzire, Baleno and Vitara Brezza etc.
QoQ & YoY Performance:
India’s one of the leading auto-mobiles manufacturing company has declared the results for the fourth quarter of fiscal year ending March 2020.
- QoQ Performance: Consolidated Net sales/ revenue of the company recorded to Rs. 182,077 millions, down by 12.13% in the March quarter of FY20. Total expenditure (excluding interest and depreciation expenses) are Rs.166,597 mn, is decreased by 10.51%. EBITDA numbers down by 15.95%.
- YoY Performance: The Company has reported a 15.21% declined in sales/revenue while expenditure (excluding interest and depreciation expenses) of the company has reduced by 13.27%.
- Profitability of the company: Net Profit of the company landed to Rs.13,223 millions, shrink by 16.70% QoQ and 27.77% YoY.
- Dividend: The company management announced the dividend of Rs. 60 per share for the financial year 2019-20.
View: As per Lokesh Sethia, SEBI Registered Analyst, the stock was closed at Rs.5,035.25 per share, the company posted weak result due to the ongoing pandemic Covid-19. The revenue of the company declined by 15.21% on Year-on-Year basis and reduced sales volume and higher cost of sales promotions dragged the net profits; But due to the nation-wide lockdown the demand for the automobiles was pent-up and it will boost after the lockdown over. So we will recommend you to “BUY” the stock for the target of Rs. 5,800.