Buy Maruti Suzuki - September 2012 Sales Update - Edelweiss

Maruti Suzuki (MSIL IN, BUY, TP: INR1,413)

- Total sales of 93,988 units are way above our estimate of ~71k units.

- Sales growth was primarily driven by significant growth in entry level petrol car segment ahead of the festive season. We had expected this in October.

- Manesar woes still hurting production of diesel models as is evident from lower sales of Swift and Dzire which must have lost at least 15k units in the month.

- The launch of new Alto 800 is due on October 16, which should be a positive catalyst for further volume growth. Likley interest rate cut by RBI should also boost buyers' sentiments.

- YTD, total sales have declined 1.4%. We have built in 8% volume growth for FY13 driven by new launches and production ramp up in H2FY13.

- We have a 'BUY' recommendation on the stock with TP of INR1,413.

Source : Equity Bulls

Keywords