1. Presentation on
Maruti Suzuki India Limited
Presented By:-

2. COMPANY INTRODUCTION
• Maruti Udyog Limited (MUL) was established in Feb 1981.
• A license and a Joint Venture agreement were signed with
the Suzuki Motor Company.
• First Indian automobile company to join the million clubs
Invests Rs 1,700 Crore in new facility to expand capacity by
2.5 lakh units.
• Maruti has a network of 1000 sales outlets across 668
cities.
• Out of 5 top selling cars, 4 are from Maruti.
• Credit Rating :- AAA

3. Business
• Compact Segment.
• Sedan Segment.
• Luxury Segment.
• SUV Segment.

4. Management
Chairman Mr. R. C. Bhargava
Managing Director & CEO Mr. Shinzo Nakanishi
Director & Managing Executive Mr. Tsuneo Ohashi
Officer (Production)
Director & Managing Executive Mr. Shuji Oishi
Officer (Marketing & Sales)
Director Mr. Osamu Suzuki
Chief General Manager Mr. S. Ravi Aiyar
(Legal) and Company
Secretary

5. Shareholding Pattern

6. Sector Analysis
• Impact of raising finance cost.
• Sales of PV cars have grown at a CAGR of 8.8%,
which is less than previous year.
• In July car sales dropped by 9%.
• Decrease in quarter ended sales.

7. Growth Drivers
• Increase in income level.
• Change in mindset.
• Infrastructure development
• India’s Population.
• Automotive hub.

8. Concerns
• Rising interest rates.
• Rising fuel prices.
• Raising prices of raw material.
• Threat of new entrant.
• Labour unrest.

9. Company Analysis
• Maruti is the highest volume car manufacturer in
Asia, outside Japan and Korea.
• Car industry grew by 29% in the year 10-11.
• Quarterly sale has been declined.
• Increase in sales from 1.02 millions to 1.27 million.

10. Market Share

11. Financials

12. Profit & Loss account
Particulars 2011 2010 2009
Net Sales 36,286.50 29,317.70 20,729.40
Other Income 1,222.70 662.00 491.70
Total Income 37,582.40 30,180.60 20,864.50
Total Expenses 33,435.70 25,694.00 18,396.20
Operating Profit 2,924.00 3,824.60 1,976.60
Interest 24.40 33.50 51.00
Depreciation 1,013.50 825.00 706.50
Profit Before
3,108.80 3,628.10 1,710.80
Tax

14. Balance Sheet
Particulars 2011 2010 2009
Equity Share
144.50 144.50 144.50
Capital
Reserves 13,723.00 11,690.60 9,200.40
Secured Loans 31.20 26.50 0.10
Unsecured
278.10 794.90 698.80
Loans
Net Block 5,529.40 5,024.70 4,070.80
Net Current
2,112.10 67.60 1,938.40
Assets
Total Assets /
14,176.80 12,656.50 10,043.80
Liabilities

15. Current Ratio
1.6
1.51 1.5
1.4
1.2
1
0.91 0.91
0.8
Current Ratio
0.6
0.4
0.2
0
2008 2009 2010 2011

16. Debt Equity Ratio
0.12
0.11
0.1
0.08
0.07 0.07
0.06
Debt Equity Ratio
0.04
0.02 0.02
0
2008 2009 2010 2011

17. Ratios Analysis
Particulars 2011 2010 2009
Quick Ratio 1.16 0.68 1.26
Interest Cover 128.41 105.39 34.21
Inventory Turnover
28.69 30.47 30.46
Ratio
Return On Net
16.50 21.10 13.04
Worth(%)
Operating Profit
8.05 12.74 9.18
Margin(%)
Net Profit
6.10 8.34 5.72
Margin(%)

18. 8 7.5
7
6
6
5
5 4.5
4 3.5
3
2
1
0
2007 2008 2009 2010 2011
Dividend Trend

19. Performance Chart

20. Index Comparison

21. VALUATION
Mahindra &
Maruti Suzuki
Mahindra
LTP 1104.95 812.60
Change (%) 2.82 2.93
1,599.90 /
52 W H/L 826.40 / 585.10
1,045.00

22. Particulars 2011
P/E 13.11
Price/Book 2.24
Industry P/E 15.92
Market Cap 31104.06
Div Yield(%) 0.70
EPS 79.22
CEPS 114.29

23. Calculation of Target Price
D1 TV
P0 = +
1+ r 1+ r
5.3 TV 2011 7.5
1104.95 = +
1+0.13 1+0.13
2010 3.5
TV = Rs.1243.2 2009 3.5
9
2008 5
2007 4.5

24. Recommendation
• Fundamental point of view.