Result Update: Maruti Suzuki India Ltd - BUY - TP Rs.9120 - Kotak

MSIL reported strong 2QFY18 earnings - comprehensively beating our and street expectation. Strong show on the volume front translated into 22% YoY growth in revenues. EBITDA margin for the quarter came in at 16.9% (versus 17% in 2QFY17 and 13.3% in 1QFY18), ahead of our and consensus estimate of 14.6%. Unlike many other car manufacturers, MSIL is in a unique position of high demand for its products and constraint on supply side. We expect this will help the company in improving its product mix. Strong demand for existing product and healthy product pipeline (new launches / refreshes / upgrades) provides visibility on healthy future volume growth. EBITDA margins are expected to broadly remain healthy for the company. We retain BUY on the stock with price target of Rs9,120 (earlier Rs9,061)

Shares of MARUTI SUZUKI INDIA LTD. was last trading in BSE at Rs.8217.1 as compared to the previous close of Rs. 8193.55. The total number of shares traded during the day was 14555 in over 1888 trades.

The stock hit an intraday high of Rs. 8240 and intraday low of 8169. The net turnover during the day was Rs. 119422259.

Source : Equity Bulls

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