Maruti Suzuki (MSIL IN) | Volume Recovery Could Remain Short-Lived

Winds of Change | Ground Checks Suggest Multiple Headwinds Still in Sight for Maruti (MSIL IN)

Independent Research Analyst

Mamta Verma

DC India Research

DC India Research LLP (DCIR) is based out of Mumbai, India.

We specialize in providing customized, independent research across listed and unlisted companies in India across equities and credit including sectoral research. Our customers include India focussed PE funds, special situation funds, domestic AMCs, Wealth Advisory& PMS firms, Rating Agencies & Investment Advisors. 

The DCIR board consists of prominent names from the industry as well as CIO’s of Hedge funds.

Equity Bottom-Up

<p style="text-align: justify;">MSIL’s 3QFY20 results are a reflection of the company’s efforts to revive demand through discounts during the festive season and ahead of year change/BS6 transition. We believe MSIL’s operating performance has bottomed out and recovery is expected from 1QFY21. Signs of headwinds easing augur well as it should enable faster recovery for MSIL with its strong urban as well as rural reach. A key monitorable in the near term would be the smooth transition of diesel to petrol and industry shift to SUVs and MSIL’s market share in this segment which off late has been under pressure.</p>

MSIL’s 3QFY20 results are a reflection of the company’s efforts to revive demand through discounts during the festive season and ahead of year change/BS6 transition. We believe MSIL’s operating performance has bottomed out and recovery is expected from 1QFY21. Signs of headwinds easing augur well as it should enable faster recovery for MSIL with its strong urban as well as rural reach. A key monitorable in the near term would be the smooth transition of diesel to petrol and industry shift to SUVs and MSIL’s market share in this segment which off late has been under pressure.

Maruti Suzuki Q3FY20 Review: Buy – Signs of Headwinds Easing & Early BS-VI Adoption Augur Well

Maruti Suzuki India

Maruti Suzuki Q3FY20 Review: Buy – Signs of Headwinds Easing & Early BS-VI Adoption Augur Well